Static drawdown, explained with an example

The loss floor is set once, below the starting balance. Your gains never move it up: it's the simplest and most forgiving drawdown type.

Updated October 25, 2026

How it works

The firm sets a max loss, for example $2,000 on a $50,000 account. The account fails if the balance (or equity, depending on the firm) reaches $48,000.

The floor stays there even if you grow the account to $55,000. The more you make, the more room you have.

Worked example

A $50,000 account with a $2,000 max loss. Five days, including one (day 2) where a $1,700 open profit falls back to $1,300 at the close.

Day	Day's P&L	Low – high	Close	Floor
1	+$1,200	$50,000 – $51,200	$51,200	$48,000
2	+$1,300	$51,200 – $52,900	$52,500	$48,000
3	−$500	$52,000 – $52,500	$52,000	$48,000
4	+$200	$52,000 – $52,200	$52,200	$48,000
5	−$1,600	$50,300 – $52,200	$50,600	$48,000

The account survives all five days. Final floor: $48,000.

The same days with the other drawdown types:

Try it with your own days

Watch out for

The floor is often measured on equity: an open losing position can hit it before it's closed.
Rare on funded futures accounts, more common in forex (often alongside a daily loss limit).

12 plans have this rule

And 4 more, in the comparison.