The drawdown type your prop firm uses might matter more than the profit split, the fees, or the platform. It determines how much room you have to trade — and how quickly that room can shrink.
Quick Definitions
Static drawdown: Your maximum loss limit is fixed. No matter how high your account grows, the floor stays the same.
Trailing drawdown: Your maximum loss limit moves up as your account grows. Once it moves up, it never comes back down.
Trailing with lock: The drawdown trails up until it reaches your starting balance, then stops trailing — effectively becoming static.
The Practical Difference
Let's say you have a $100,000 account with a $3,000 drawdown limit.
With Static Drawdown
| Account Balance | Drawdown Floor | Buffer | |----------------|---------------|--------| | $100,000 | $97,000 | $3,000 | | $103,000 | $97,000 | $6,000 | | $106,000 | $97,000 | $9,000 | | $110,000 | $97,000 | $13,000 |
Your floor never moves. As you grow, your buffer grows with it.
With Trailing Drawdown (EOD)
| Account Balance | Drawdown Floor | Buffer | |----------------|---------------|--------| | $100,000 | $97,000 | $3,000 | | $103,000 | $100,000 | $3,000 | | $106,000 | $103,000 | $3,000 | | $110,000 | $107,000 | $3,000 |
Your floor chases your balance. No matter how much you make, your buffer stays the same.
With Trailing + Lock at Initial
| Account Balance | Drawdown Floor | Buffer | |----------------|---------------|--------| | $100,000 | $97,000 | $3,000 | | $103,000 | $100,000 (locked) | $3,000 | | $106,000 | $100,000 (locked) | $6,000 | | $110,000 | $100,000 (locked) | $10,000 |
Once the floor reaches $100,000, it locks. After that, it behaves like static.
When Static Drawdown Wins
Static drawdown is objectively more forgiving. It wins when:
- You plan to grow the account — Every dollar of profit adds to your safety buffer
- You have a volatile strategy — Larger drawdowns mid-session won't threaten your floor
- You hold positions overnight — Gap risk doesn't erode your buffer after profitable days
- You trade through news events — Spike-and-reverse patterns are less dangerous
When Trailing Drawdown Is Acceptable
Trailing drawdown isn't necessarily bad — it depends on the specific numbers:
- The total drawdown is generous — A 6% trailing drawdown gives more room than a 3% static
- It locks at a reasonable level — Trailing that locks at initial is nearly as good as static
- You're a scalper — If you take small, quick profits, the floor moves slowly
- The other terms are better — A firm with trailing drawdown but 90% split and no activation fee might beat a static firm with 70% split and $200 activation
What Each Firm Offers
Here's the drawdown landscape across major firms:
Static available:
- Trade Day — offers static as one of three options per account size
- Funded Futures Network — static on funded accounts (intraday trailing on evaluation)
Trailing with lock:
- Apex Trader Funding — EOD trailing, locks at profit target
- Alpha Futures — EOD trailing, locks at initial balance
- FundedNext — trailing (type varies by challenge), locks at initial
Standard trailing:
- Topstep — EOD trailing, no lock
- E8 Futures — EOD Dynamic, locks at initial balance
- Legends Trading — EOD trailing
Multiple options:
- Take Profit Trader — EOD trailing (eval), intraday trailing (PRO), EOD (PRO+)
How to Decide
Ask yourself these questions:
- Do I plan to compound profits in my account? → Static is significantly better
- Do I take large intraday swings? → Static protects against volatile sessions
- Am I willing to pay more for static? → Static accounts sometimes cost more
- Can I trade profitably with a fixed buffer? → Trailing is fine if your strategy is consistent
Compare Side-by-Side
Use the comparison tool to see the exact drawdown type, percentages, dollar amounts, and lock behavior for every firm. The drawdown section shows the strictness rating so you can quickly identify the most lenient options.
For a broader overview of drawdown concepts, check the glossary.