Menu

Home / Guides / How Prop Firm Drawdown Works (Static vs Trailing vs EOD)

How Prop Firm Drawdown Works (Static vs Trailing vs EOD)

Honest risk note: most challenge buyers fail. Nothing here is financial advice.

Max drawdown is the lowest your account may fall before it's closed. Three types:

Many trailing limits stop (lock) once you're a set amount in profit. For example, Lucid locks at starting balance + $100 source. The daily loss limit is separate and resets every day.

FAQ

Which drawdown is best for beginners?

Static is the easiest to plan around, then end-of-day trailing. Intraday trailing is the hardest.

Does the daily loss limit count open trades?

At many firms, yes. Check each firm's rule page.

Start hereGuidesCheat sheet