What is Static Drawdown?
A fixed maximum-loss floor on a prop firm account — set once at the start and never trails upward with profit.
A static drawdown — sometimes called a balance-based drawdown — is the simpler of the two prop firm max-loss models. The floor is set once at the start of the account and never moves. On a $100k account with a 10% static drawdown, the floor is $90,000 forever, regardless of how high equity climbs.
This is friendlier to a trader who builds a profit cushion. A trader who pushes equity to $115,000 has a $25,000 buffer to the static floor; a trader on a trailing drawdown would have only the original $10,000 buffer because the floor moved up underneath them.
Static drawdown is the standard on most FTMO accounts, FundedNext Maven, and many newer 1-Step firms. Trailing drawdown remains common on FundedNext Stellar and parts of The Funded Trader. Always confirm which one your firm uses — it is the single rule that most often changes how a passing strategy is structured.