Definition
What is Static drawdown?
A static drawdown is a fixed maximum loss level calculated from the initial balance that never moves, no matter how much profit you make.
With a static drawdown the account has one floor for its whole life. It is calculated once from the initial balance and stays there, even if the account grows a lot.
This makes it more forgiving than a trailing limit: every dollar of profit adds room between your equity and the floor, so you can hold trades through normal pullbacks.
It is popular with swing traders and with traders new to prop firms because it is simple to track.
Example
On a $100,000 account with an 8% static limit the floor is $92,000. If you are up $6,000, you have $14,000 of room before the floor.
At a prop firm
The Axora Funded 2-Step uses an 8% static maximum loss, together with a 4% daily loss limit.
Frequently asked questions
Does a static drawdown move after profits?
No. It stays at the same level for the life of the account.
Which Axora Funded programme uses a static drawdown?
The 2-Step challenge, with an 8% static maximum loss.