Data updated September 29, 202690 firms · 2,228 challenges trackedAffiliate disclosure
Guide · updated September 29, 2026 · data from our live database

Trailing vs Static Drawdown, Explained

By , lead prop firm analyst · Updated September 29, 2026 · How we review
Short answer: static drawdown is a fixed floor; trailing drawdown rises with your best balance or equity. The same trades can pass on a static account and fail on a trailing one. 48% of the accounts in our data use static drawdown; 52% use a trailing model.

The drawdown models

  • Static: the floor is the starting balance minus the maximum loss, forever. $100K with 6% means you may never go below $94,000.
  • End-of-day trailing: the floor follows your highest closing balance. Intraday swings do not move it.
  • Intraday (equity) trailing: the floor follows your highest equity in real time, including open profit. A winning trade that retraces tightens your room.
  • Trailing on balance: the floor follows your highest closed balance; open profit counts only after you close.

Most trailing floors stop rising once they reach the starting balance, after which they act like a static floor at breakeven.

One equity curve, three results

The chart shows a hypothetical $100K account with a 6% maximum loss. The trader runs a position to a peak of $105,500 intraday, then gives back the gain over the next days and dips to $99,300 before recovering.

Same trades, different floors

$95K$100K$105KEquityStaticEOD trailingIntraday trailingbreach
Illustrative. Static floor stays at $94K; end-of-day trailing rises to $97.5K; intraday trailing follows the $105.5K peak to $99.5K and is breached.

The static account never comes close to its floor. The end-of-day account's floor rises with the best closing balance ($103,500) to $97,500 and survives the dip. The intraday-trailing account's floor follows the $105,500 intraday peak up to $99,500, so the dip to $99,300 breaches it, although the account is down less than 1% from its start.

Measured on balance or on equity?

The second question is what the floor is compared with. Equity includes open trades, so a floating loss can breach the account before you close. Balance counts only closed trades. Many firms use the higher of the two at the end of the day for the daily limit. Our firm rules pages show the basis for every account under “Measured on”.

Which markets use which model

Forex

1731accountsStatic · 57%Trailing (balance) · 18%Trailing (equity) · 18%End-of-day trailing · 5%Trailing · 1%Intraday trailing · 1%

Futures

392accountsEnd-of-day trailing · 74%Intraday trailing · 18%Static · 4%Trailing · 2%Trailing (equity) · 2%

Crypto

93accountsStatic · 69%Trailing (balance) · 28%End-of-day trailing · 3%

Forex and crypto accounts are mostly static or balance-trailing. Futures accounts are dominated by end-of-day and intraday trailing drawdown, which is why futures traders should read the drawdown model before the price.

Which one to choose

  • Swing traders and anyone who lets winners run: static. See static drawdown firms and swing trading firms.
  • Intraday traders who take profit quickly: end-of-day trailing is workable; lock profits before the close.
  • Intraday trailing: only if you close winners fast and the price is clearly lower. Treat open profit as part of your loss room.

Next steps

Static drawdown prop firmsSwing trading prop firmsHow to pass a challenge

FAQ

What is the difference between trailing and static drawdown?

A static drawdown is a fixed floor below your starting balance that never moves. A trailing drawdown follows your highest balance or equity upwards, so profits you give back reduce your remaining room.

Which drawdown is best for prop firm challenges?

Static is the most forgiving, then end-of-day trailing. Intraday (real-time equity) trailing is the strictest because open profit you give back counts.

Does trailing drawdown stop trailing?

At most firms, yes: the floor usually stops rising once it reaches the starting balance. After that it behaves like a static floor at breakeven.

Which prop firms use static drawdown?

62 firms in our data have at least one static-drawdown account. See our static drawdown list.