Static Drawdown
Also known as: static DD, balance-based drawdown, fixed drawdown
Direct Answer
A static drawdown is a fixed maximum loss measured from your starting balance, not from any later high. Unlike a trailing limit, it never moves up as you become profitable, so your buffer can only grow. Most traders prefer static rules because they make risk planning predictable and reward consistent, long-horizon performance.
Static drawdowns anchor at the starting balance for the life of the account. A $100k account with a $10k static drawdown stays at $90k regardless of how high your equity climbs.
This is the most forgiving structure: profits build a permanent buffer between you and the breach line, and you can take normal drawdown swings without losing the account.
Which firms enforce this rule
| Firm | Strictness |
|---|---|
| FTMO | Standard |
| The5%ers | Standard |
| FundingPips | Standard |
Example scenarios
Scenario
$100k account, $10k static drawdown. Trader grows to $115k, then has a $4k losing week.
Outcome
Account is at $111k, far above the $90k floor — no risk to funded status.
Scenario
Same account drops to $89k after a losing streak.
Outcome
Hard breach — account closed because static floor is fixed at $90k.
Frequently asked questions
Does static drawdown ever change?
Is static safer than trailing?
Which firms use static drawdown?
Is daily loss still enforced on static accounts?
How big are typical static drawdowns?
Related rules
Trailing Drawdown
A trailing drawdown is a moving loss limit that follows your highest balance or equity peak upward but never trails back down. Once your peak rises, your floor rises with it, so unrealized profits effectively lock in. Hit the trailing floor at any point and the funded account is breached and closed immediately.
Profit Target
A profit target is the percentage gain you must reach in an evaluation phase to advance or get funded. Most one-step challenges set targets between eight and ten percent, two-step models five to ten percent per phase. Hitting it without breaking any other rule unlocks the next stage or funded status immediately.