Static drawdown, step by step
On a $100K 2-Step account the maximum loss is 8% static: the floor is $92,000 and never moves. If you are up $6,000, you have $14,000 of room before the floor. This makes the 2-Step more forgiving for traders who let winners run and accept bigger swings.
Trailing drawdown, step by step
On a $100K 1-Step account the maximum loss is 6% trailing: the floor starts at $94,000 and rises with your highest balance, up to the initial $100,000 where it stops. After a peak of $103,000 the floor is $97,000; after a peak of $106,000 it is locked at $100,000.
The practical effect: giving back profits costs you room. Traders who scale out and protect gains do well with trailing limits.
Which one should you choose?
Pick the drawdown that matches your behaviour:
- Static (2-Step): you hold through pullbacks, trade swing setups or are new to prop firms.
- Trailing (1-Step): you take partial profits, trade intraday and want a single, faster evaluation.
- Futures: intraday trailing drawdown with contract limits, the standard in futures prop trading.