Trailing drawdown problem
If drawdown trails open equity intraday, a winning trade can lift the threshold and then reverse, causing a breach despite the account being above starting balance.
Trailing drawdown can make an account feel smaller after profitable trades because the loss limit moves upward. No trailing drawdown or static drawdown accounts are easier to calculate, but they still require disciplined risk.
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If drawdown trails open equity intraday, a winning trade can lift the threshold and then reverse, causing a breach despite the account being above starting balance.
Static drawdown stays anchored to the starting balance or fixed level. Traders can plan maximum loss more clearly.
End-of-day trailing drawdown updates after settlement or session close. It may be more forgiving intraday but still tight over time.
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A loss limit that moves upward as the account makes new highs.
They are easier to model, but other rules can still make them difficult.
A drawdown threshold calculated from end-of-day account values rather than every intraday high.
Use this guide with the broader prop firm comparison pages to check drawdown, payout access, platform fit and country restrictions.