What is the difference between static and trailing drawdown?

A static drawdown floor is fixed from the starting balance. A trailing floor rises as your balance or equity reaches new highs and never moves back down.

Is end-of-day trailing safer than intraday trailing?

Usually it gives more room, because the floor moves only at the close and ignores intraday peaks. It still ratchets up with every new closing high, so check the exact rule.

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Trailing Drawdown Explained: Static, End-of-Day and Intraday With Worked Examples

How static, end-of-day trailing and intraday trailing drawdown work on a funded account, with step-by-step numbers and the mistakes that end accounts.

Why drawdown rules decide most accounts

Every prop firm evaluation has a loss limit, and how the limit is calculated matters more than the profit target. Two accounts with the same "$2,000 max loss" can behave very differently depending on whether that floor stays still or moves up as you make money. Understanding the difference before you pay is one of the cheapest ways to avoid a failed attempt.

This guide uses simple numbers you can check with the free prop challenge calculator on this site. The examples are illustrations, not any firm's actual rules.

Static drawdown: the floor never moves

With a static (fixed) max loss, the minimum allowed balance is set once from the starting balance. On a $100,000 account with a 10% static max loss, the floor is $90,000 for the whole evaluation, whether your balance is $100,000 or $108,000. If you make a profit, your room to the floor grows. This is the most forgiving type.

On 2026-10-23, FTMO's Trading Objectives page described its 2-Step Challenge max loss as static, calculated from the initial simulated capital, while its 1-Step Challenge used a trailing end-of-day max loss. Firms change rules, so check the current page on our prop firm database.

End-of-day trailing: the floor rises at the close

With an end-of-day (EOD) trailing drawdown, the floor is recalculated from your highest end-of-day balance. Take a $50,000 account with a $2,000 trailing max loss. At the start the floor is $48,000. If you close day one at $50,800, the floor moves to $48,800 (50,800 minus 2,000). If you close day two at $50,300, the floor stays at $48,800, because it only moves up.

The floor does not move during the day, so an intraday swing does not raise it. But it never goes back down, so profits you do not withdraw or protect can become a trap: a $50,800 peak followed by a slide leaves less room than at the start.

Intraday trailing: the floor follows every peak

An intraday trailing drawdown tracks the highest equity reached at any moment, including unrealised profit. On the same $50,000 account with a $2,000 trailing limit, if a trade is up $1,500 at its peak the floor jumps to $49,500 (51,500 minus 2,000), even if you give the profit back and close at break-even. Now your room is only $500 below your starting balance.

This is why open profit can be dangerous on intraday trailing accounts: a winning trade that reverses can end the account without ever showing a closed loss.

The "lock" at the starting balance

Some firms stop a trailing floor once it reaches the starting balance, or once a profit buffer is reached, so the floor then stays put. Others never lock it. The calculator on this site lets you switch this assumption on and off, because it changes how much room you have after a good run. Always find the exact wording in the firm's own rules.

Rules to check before you pay

Does the max loss use balance or equity? Is it measured at the end of the day or intraday? Does it trail, and does it lock? When does the daily reset happen and in which time zone? Is the daily loss limit measured from the start-of-day balance or equity? Write the answers in dollars for the size you plan to buy. If the firm's page is unclear, ask support in writing and keep the reply.

Key takeaways

Static floors never move; trailing floors only move up.
Intraday trailing counts unrealised profit and can punish open trades that reverse.
Some firms lock a trailing floor at the start balance; others do not.
Convert every rule into dollars for your account size before paying.

FAQ

What is the difference between static and trailing drawdown? A static drawdown floor is fixed from the starting balance. A trailing floor rises as your balance or equity reaches new highs and never moves back down.
Is end-of-day trailing safer than intraday trailing? Usually it gives more room, because the floor moves only at the close and ignores intraday peaks. It still ratchets up with every new closing high, so check the exact rule.

Educational content, not financial advice.