Prop Firm Drawdown Explained: Static, Trailing & EOD
propfirm.coupons team7 min read
The single rule that fails most traders. Learn the three drawdown models and how each one affects your risk per trade.
Static drawdown
Max loss is fixed relative to the starting balance. If you start with $100K and have 10% drawdown, your floor is always $90K.
Trailing drawdown
The floor rises with your high-water mark (often including unrealised profit). Common in futures firms. It locks in once you exceed the starting balance by the drawdown amount at some firms.
End-of-day (EOD) drawdown
The floor only updates at the daily close, giving you intraday breathing room. A popular middle ground offered by firms such as MyFundedFutures.