In short. An end-of-day drawdown is a trailing loss limit updated once a day on the closed balance, not on the intraday peak. A trade that goes +$800 unrealised and closes flat leaves the limit unchanged; only the balance at the daily close moves it, and only upwards.
Same 50K account, $2,500 drawdown: a day that peaks at +$1,000 unrealised and closes at +$200 raises the limit by $200, where an intraday trailing account would have raised it by $1,000. Over a month of normal trading, that difference is most of the drawdown.
End-of-day drawdown is the type most order-flow traders prefer, because scalping leaves many small unrealised peaks. The shortlist 'end-of-day drawdown' ranks the firms on the board that use it, cheapest first.
Questions traders ask
What is End-of-day drawdown?
An end-of-day drawdown is a trailing loss limit updated once a day on the closed balance, not on the intraday peak. A trade that goes +$800 unrealised and closes flat leaves the limit unchanged; only the balance at the daily close moves it, and only upwards.