A static drawdown is a fixed floor. A trailing drawdown is a floor that rises as your account makes new equity highs — and never comes back down.
How it moves
Take a $100,000 account with a 6% trailing limit. The floor starts at $94,000. If equity rises to $103,000, the floor moves up to $97,000. Once the floor reaches the starting balance ($100,000) it stops trailing and stays there permanently.
- Equity $100,000 → floor $94,000
- Equity peak $103,000 → floor $97,000
- Equity peak $106,000 → floor $100,000 (locked from here on)
Why it catches traders out
Because the floor follows the highest equity — including open profits — letting a winning trade turn into a loser tightens your limit twice: once when the peak was set and again as equity falls. Many traders breach a trailing limit while still showing a profit on the account.
How to trade with it
- Take partial profits: close part of a winner to bank gains before they reverse.
- Use a trailing stop so open profit is protected automatically.
- Aim to reach the lock level (starting balance + limit) early with small, consistent gains.
- Watch "Room to max loss" in the platform — it updates with every tick.