When you look into your Microsoft SQL Server files, you’ll find 5 trace files in C:\program Files\Microsot SQL Server\MSSQL.1\MSSQL\LOG (if you install SQL Server in drive C). These trace files are running by the default on your SQL Server.
And if you’ve been thinking of deleting it to free some space in your C drive, don’t bother to do it! Here is the explanation why u don't need to delete it.
There’re only 5 trace files with maximum 20 MB of maximum size each. The number in the trace file name indicates its sequence. If a trace file has reached its maximum size (20 MB), a new trace file will be created. So, even they're deleted, they'll be created again as long as the SQL is still working.
Here’s the query to check the currently running of trace file:
SELECT * FROM ::fn_trace_getinfo(DEFAULT)
Property column has the following meaning: 1 = trace option, 2 = trace file name, 3 = maximum size of trace file, 4 = trace stop time, 5 = current trace status.
Hope this information will be useful for you ...