# Prop firm drawdown types explained > A static drawdown is a fixed floor: on a $100,000 account with a 10% limit you may never go below $90,000. A trailing drawdown follows your highest balance, so the floor rises as you profit. End-of-day trailing updates only at the daily close; intraday trailing follows every unrealised peak, and is the hardest to trade. **Source:** https://propfirmpal.com/learn/prop-firm-drawdown-types **Generated:** 2026-09-25 **Publisher:** Prop Firm Pal — independent prop firm comparison _Prop Firm Pal earns affiliate commission from some listed firms. This is disclosed on-site and does not affect the computed ranking order._ --- _Updated 2026-09-24._ ## The four limits, side by side Prop firms combine a maximum drawdown — the account’s absolute floor — with, usually, a daily loss limit. How the maximum moves is the rule that most shapes how you can trade. | Type | Floor starts at | Floor moves when | Counts open trades | | --- | --- | --- | --- | | Static | Start balance − limit | Never | Usually | | End-of-day trailing | Start balance − limit | A day closes at a new high | At the close | | Intraday trailing | Start balance − limit | Equity makes any new high | Yes, continuously | | Daily loss limit | Day’s start − daily limit | Resets each trading day | Often | _Many trailing limits stop rising once the floor reaches the starting balance. Exact measurement (balance or equity) is set by each firm._ ## Static drawdown A [static drawdown](https://propfirmpal.com/glossary/static-drawdown) never moves. On a $100,000 account with a 10% static limit the floor is $90,000 for the life of the account; make $6,000 and you have $16,000 of room. It is the most forgiving type, because profit adds to your cushion instead of dragging the floor up. It is rarer than trailing: 18 of the 23 firms with complete terms in our [industry report](https://propfirmpal.com/industry-report) use a trailing maximum drawdown. Browse [static drawdown firms](https://propfirmpal.com/features/static-drawdown). ## End-of-day trailing drawdown An [end-of-day drawdown](https://propfirmpal.com/glossary/end-of-day-drawdown) moves the floor up only when the account closes a day at a new high, and only by that close. Example: a $50,000 account with a $2,000 EOD trailing limit starts with a floor of $48,000. You close day one at $51,000, so the floor rises to $49,000. On day two you are up $1,500 intraday but close at $50,500 — the floor stays at $49,000, because the intraday peak never counted. This is the common futures-firm model, and it forgives intraday swings that an intraday trailing limit would punish. ## Intraday trailing drawdown An [intraday trailing drawdown](https://propfirmpal.com/glossary/intraday-trailing-drawdown) follows equity in real time, including open profit. Same account: you are up $1,500 on an open trade, so the floor rises to $49,500, and if the trade then reverses to breakeven you are $500 from breach on an account showing no loss. Open profit you did not bank still costs you room. It punishes strategies that let winners run and give some back, and suits traders who take profit quickly. Test any trade plan with the [trailing drawdown calculator](https://propfirmpal.com/calculators/trailing-drawdown). ## Daily loss limits A [daily drawdown](https://propfirmpal.com/glossary/daily-drawdown) limit caps one day’s loss — 3% is the median in our data — and resets each trading day. Firms differ on the reference point: the day’s starting balance, the higher of balance or equity at the reset, or equity including open trades. That difference decides whether a trade open over the reset counts against the new day. Some firms have no daily limit at all. ## Buffers and the drawdown lock Two terms change how a trailing limit behaves on a funded account. A [drawdown lock](https://propfirmpal.com/glossary/drawdown-lock) stops the floor trailing once it reaches a set level, usually the starting balance. A [buffer](https://propfirmpal.com/glossary/buffer) is profit you must hold above the starting balance before withdrawing, so that a payout cannot put the account straight back at its floor. On futures accounts the two are related: the buffer requirement is often set so that after a payout the account still sits above the locked floor. ## Which drawdown type is best? Static is the easiest to trade; end-of-day trailing is next; intraday trailing is hardest. But the headline limit matters as much as the type — a 6% EOD trailing limit can be more forgiving than a 4% static one. Compare the room the limit gives against your strategy’s normal drawdown, which the [drawdown calculator](https://propfirmpal.com/calculators/drawdown) and [risk of ruin calculator](https://propfirmpal.com/calculators/risk-of-ruin) estimate. A “good” maximum drawdown is one your strategy’s historical worst run fits inside with room to spare. ## Frequently asked questions ### Which is better, static or trailing drawdown? Static, for the trader: the floor never moves, so profit adds to your room. Trailing limits pull the floor up with your peak and count profit you give back. ### What is EOD drawdown in a prop firm? End-of-day trailing drawdown: the floor rises only when a day closes at a new high, so intraday peaks do not move it. ### What is the difference between daily and intraday drawdown? A daily limit caps how much you can lose in one day and resets daily. An intraday trailing drawdown is the maximum limit, following equity peaks in real time. ### Is trailing drawdown good? It is harder than static, especially intraday. It can suit quick profit-takers, and many trailing limits lock at the starting balance once you are far enough in profit. ### Do open trades count toward drawdown? At most firms, yes — for intraday trailing and many daily limits, open losses and open peaks count. End-of-day limits count them only at the close. ### What is a good maximum drawdown? One your strategy’s historical worst run fits inside with room to spare. Compare the limit with your own worst drawdown, not with other firms’ limits. ### What is the difference between balance-based and equity-based drawdown? Balance-based limits count closed trades only; equity-based limits also count open profit and loss, so a trade can breach while still open. ## Related pages - [Trailing drawdown calculator](https://propfirmpal.com/calculators/trailing-drawdown) - [Drawdown calculator](https://propfirmpal.com/calculators/drawdown) - [Trailing drawdown in the glossary](https://propfirmpal.com/glossary/trailing-drawdown) - [End-of-day drawdown in the glossary](https://propfirmpal.com/glossary/end-of-day-drawdown) - [Prop firms with static drawdown](https://propfirmpal.com/features/static-drawdown) - [Prop firms with trailing drawdown](https://propfirmpal.com/features/trailing-drawdown) - [What is a prop firm?](https://propfirmpal.com/learn/what-is-a-prop-firm) — markdown: https://propfirmpal.com/learn/what-is-a-prop-firm.md - [How funded trading accounts work](https://propfirmpal.com/learn/funded-trading-accounts) — markdown: https://propfirmpal.com/learn/funded-trading-accounts.md - [How to get a funded trading account](https://propfirmpal.com/learn/how-to-get-a-funded-trading-account) — markdown: https://propfirmpal.com/learn/how-to-get-a-funded-trading-account.md - [How prop firm challenges work](https://propfirmpal.com/learn/how-prop-firm-challenges-work) — markdown: https://propfirmpal.com/learn/how-prop-firm-challenges-work.md - [Instant funding vs evaluation](https://propfirmpal.com/learn/instant-funding-vs-evaluation) — markdown: https://propfirmpal.com/learn/instant-funding-vs-evaluation.md - [Why traders fail prop firm challenges](https://propfirmpal.com/learn/why-traders-fail-prop-firm-challenges) — markdown: https://propfirmpal.com/learn/why-traders-fail-prop-firm-challenges.md - [How to scale a funded account](https://propfirmpal.com/learn/how-to-scale-a-funded-account) — markdown: https://propfirmpal.com/learn/how-to-scale-a-funded-account.md - [Futures vs forex prop firms](https://propfirmpal.com/learn/futures-vs-forex-prop-firms) — markdown: https://propfirmpal.com/learn/futures-vs-forex-prop-firms.md - [How to choose a prop firm](https://propfirmpal.com/learn/how-to-choose-a-prop-firm) — markdown: https://propfirmpal.com/learn/how-to-choose-a-prop-firm.md - [Prop firm vs broker vs hedge fund](https://propfirmpal.com/learn/prop-firm-vs-broker-vs-hedge-fund) — markdown: https://propfirmpal.com/learn/prop-firm-vs-broker-vs-hedge-fund.md - [How do prop firms make money?](https://propfirmpal.com/learn/how-do-prop-firms-make-money) — markdown: https://propfirmpal.com/learn/how-do-prop-firms-make-money.md - [How prop firm payouts work](https://propfirmpal.com/learn/how-prop-firm-payouts-work) — markdown: https://propfirmpal.com/learn/how-prop-firm-payouts-work.md - [Can you make money with a prop firm?](https://propfirmpal.com/learn/can-you-make-money-with-a-prop-firm) — markdown: https://propfirmpal.com/learn/can-you-make-money-with-a-prop-firm.md - [Prop firm taxes](https://propfirmpal.com/learn/prop-firm-taxes) — markdown: https://propfirmpal.com/learn/prop-firm-taxes.md - [Are prop firms legit?](https://propfirmpal.com/learn/are-prop-firms-legit) — markdown: https://propfirmpal.com/learn/are-prop-firms-legit.md - [Are prop firms regulated?](https://propfirmpal.com/learn/are-prop-firms-regulated) — markdown: https://propfirmpal.com/learn/are-prop-firms-regulated.md - [Are prop firms going away?](https://propfirmpal.com/learn/are-prop-firms-going-away) — markdown: https://propfirmpal.com/learn/are-prop-firms-going-away.md