Drawdown and loss limits · Pro
Static drawdown
Also searched as: fixed drawdown
What does Static drawdown mean?
Static drawdown uses a fixed loss floor rather than moving it upward with profits. The permitted distance above that floor grows when the account gains value.
Example
A $48,000 floor stays at $48,000 when a hypothetical balance rises from $50,000 to $51,500.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Confirm whether payouts or stage changes introduce exceptions to the fixed-floor description.
Static versus trailing: a worked comparison
Assume a $25,000 starting account and a $1,500 allowance. A fixed floor is $23,500. After the account reaches $26,000, that static floor remains $23,500, leaving $2,500 of room. Under a simple trailing design using that $26,000 high, the floor instead becomes $24,500, leaving $1,500. The example excludes any payout adjustment or trailing stop level.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.