Prop firm challenges with end-of-day (EOD) drawdown

What is end-of-day (EOD) drawdown?

The maximum permitted loss is calculated from the highest balance recorded at the end of a trading day.

For example, consider a 100K account with 5% EOD drawdown. That 5% is applied to your highest end-of-day balance. If you finish day one at 102K and day two at 101K, the calculation uses 102K, giving a threshold of $96,900 in this example.

It's a good compromise between static and trailing drawdown. You get more freedom than with trailing drawdown, but you still need to watch your balance each day.