What is the difference between trailing and static drawdown in a prop firm?
A static drawdown is measured from a starting balance, or from another fixed reference the firm names. A trailing drawdown follows a peak, so the floor can rise after a winning run. The same headline percentage can leave different amounts of room. Confirm the exact rule with the firm. RangeSight is a risk simulator for education. It is not financial advice, and it is not affiliated with any prop firm.
Last updated: November 10, 2026
The two rule types, in plain words
Static. The maximum loss is measured from a fixed point, often the starting balance. Gains do not usually move that floor up. The room you have can grow if the account is above the starting point, because the floor stayed put.
Trailing. The floor follows a high-water mark. After a winning run, a retracement is measured from that new peak, not only from where you started. A streak that starts right after a new high can use up the limit faster than the starting number suggests.
Firms also differ on the details:
- Trailing end of day. The trail may update from an end-of-day balance rather than from an intraday peak. The compare table on this site labels some firms "Trailing Eod".
- When the trail stops. Some rules stop trailing after a threshold. Others keep trailing. That detail is in the firm's rulebook, not in a headline percentage.
- Daily loss. A daily cap is a separate rule. It can stop a day early without making a multi-day streak shorter.
- Mixed. The compare table labels some firms "Mixed" when more than one type applies. Read that firm's page, then confirm with the firm.
How this shows up in the compare table
The prop firm compare table has a DD Type column with values such as Static, Trailing, Trailing Eod, and Mixed, next to a Max DD column.
Sort or filter by drawdown type if you are comparing one kind of rule. Then open the firm page and verify the current wording with the firm. Rules change.
A static example on a firm page
The FTMO page is the live-firm example. In this capture, the page describes a static 10% maximum drawdown and a 5% daily loss limit measured from the prior day's closing equity. The inputs are a demo plan, not a recommendation. The page also showed a "Not yet re-checked" badge. Confirm the current rule with FTMO. Do not quote the grade or ruin figures.
Why the type can matter more than the headline number
On a static limit, profits can add to your cushion. On a trailing limit, the floor can follow your peak, so a good run does not always buy more room. If you are counting cushion in losing trades, recalculate from the current trailing level after winners lock in, not only from the starting balance. See What is a drawdown cushion, and how do I think about one on a $50k prop account?.
FAQ
Is trailing always tighter than static?
For the same headline percentage, a trailing floor can leave less room after a winning run, because the floor may rise. The details still depend on when the trail updates and when it stops. Read the firm's rule, not only the label in this table.
What does Trailing Eod mean in the table?
It is this site's label for a trailing rule that is described as updating from an end-of-day balance. Confirm the exact wording with the firm.
Where do I compare firms by drawdown type?
Use the compare table. Filter by drawdown type, or sort Max DD, then open a firm page.
Is this financial advice?
No. RangeSight does not recommend prop firms or sizes. It is an educational risk simulator.