Drawdown Rules Explained

Drawdown is the loss threshold that can fail a funded trading account. The detail matters: two firms can advertise the same maximum drawdown but calculate it very differently.

Main types

• Static drawdown
• Trailing drawdown
• End-of-day drawdown
• Intraday equity-based drawdown

Always compare drawdown rules alongside profit target, daily loss, payout timing, and restrictions.

Compare prop firms or return to the rules guide.