Static Drawdown vs Trailing Drawdown

Static drawdown usually stays fixed relative to your starting balance. Trailing drawdown can move upward as your account grows, which can make it more restrictive for some strategies.

Quick comparison

• Static drawdown: simpler to plan around because the loss threshold does not usually chase profits.
• Trailing drawdown: can protect the firm more tightly, but may punish giveback after open profit.

Which is better?

It depends on your trading style. Swing traders and runners often prefer rules that do not trail unrealised equity too aggressively. Scalpers may care more about daily loss and payout rules.

Compare prop firms or return to the rules guide.