Static drawdown example
On a $100,000 account with 8% static drawdown, the account generally cannot fall below $92,000. Unlike trailing drawdown, that threshold does not rise when the account reaches $103,000.
Static drawdown means the maximum loss line does not trail every new high. Balance-based drawdown may also ignore open P&L until trades close. Both can make risk planning clearer than intraday trailing drawdown.
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On a $100,000 account with 8% static drawdown, the account generally cannot fall below $92,000. Unlike trailing drawdown, that threshold does not rise when the account reaches $103,000.
Balance-based rules focus on closed P&L, while equity-based rules include open trades. Traders must know which measure triggers breach.
Even with static drawdown, withdrawing too much can leave the account fragile. Keep a buffer above the loss limit after payouts.
This page is written to match the exact search intent without stuffing keywords. Prop firm rules change often, so always confirm the live rulebook, payout policy and legal entity before paying for an account.
It is easier to model, but target, payout and daily loss rules still matter.
A rule based on closed account balance rather than open equity.
Yes, if equity or daily rules are breached.
Use this guide with the broader prop firm comparison pages to check drawdown, payout access, platform fit and country restrictions.