The calculation
Floor = high water mark minus 6% of the initial balance. On a $10,000 account the distance is always $600. Start: floor $9,400. Close a week at $10,400: the floor moves to $9,800. Fall back to $10,000 and you are $200 from failing, even though you are flat on the start.
| Event | Closed balance | High water mark | Floor |
|---|---|---|---|
| Start | $10,000 | $10,000 | $9,400 |
| Good week | $10,400 | $10,400 | $9,800 |
| Pullback | $10,000 | $10,400 | $9,800 |
| Breach point | below $9,800 equity | $10,400 | $9,800 |
The example uses round numbers. The FAQ's own example uses the same formula: HWM minus 6% of the initial balance.
Equity, not balance
The floor is checked against equity, which includes open trades. A position that dips below the floor intraday breaches the account even if it would have recovered by the close.
Trailing drawdown vs daily loss
The daily limit resets every day at 00:00 UTC. The trailing floor never resets. You can respect every daily limit and still breach the trailing one over a slow week. More: daily loss limit, all rules.
Questions
Is SabioTrade drawdown trailing or static?
Trailing. It follows the highest closed balance.
Does the floor ever go down?
No. It only rises with new highs.
Are open trades counted?
Yes. The check uses equity, including open positions.