Prop Firm Drawdown Calculator

What is a static drawdown in prop firms?

A static drawdown calculates your maximum loss from your initial account balance. For example, a 10% static drawdown on a $100,000 account means your balance can never drop below $90,000, regardless of profits made.

What is a trailing drawdown in prop firms?

A trailing drawdown follows your highest balance (peak/high-water mark). If your $100,000 account grows to $110,000, a 10% trailing drawdown means your floor moves up to $100,000 - locking in that gain as a safety net for the firm.

What happens if I breach my drawdown limit?

Breaching your drawdown limit results in immediate account termination. All open trades are closed and the challenge or funded account is failed. This is why monitoring your remaining buffer in real time is critical.

Which prop firms use trailing drawdown?

Apex Trader Funding and TopstepTrader are well known for using trailing drawdown on futures accounts. Most forex prop firms like FTMO and FundedNext use static drawdown from the initial balance.