Static Drawdown Explained
Static drawdown is the simplest and most forgiving drawdown type in prop trading. Unlike trailing drawdown, the floor never moves — it stays at a fixed level below your starting balance for the entire life of the account.
How Static Drawdown Works
With static drawdown, if you start a $50,000 account with 10% max drawdown, your floor is permanently set at $45,000. Whether your account grows to $60,000 or $100,000, the floor stays at $45,000. You only breach if your equity drops below that fixed level. This means the more profit you make, the larger your effective buffer becomes.
Why Static Drawdown Is Rare
Static drawdown is generous to traders, which means it is costly for prop firms to offer. Most firms that offer static drawdown either charge higher evaluation fees, have lower profit splits, or impose other restrictions to compensate. Static drawdown is more common in the forex/CFD prop firm space than in futures.
Strategies for Static Drawdown Accounts
With static drawdown, your primary risk is early in the account lifecycle before you have built a profit buffer. Focus on capital preservation in your first 10-15 trades, then gradually increase position sizing as your account grows. Once you have significant profit above the floor, you can trade more aggressively.
Firms Using Static Drawdown
| Firm | Max Drawdown | Profit Split | Payout Frequency |
|---|---|---|---|
| Alpha Capital Group | 10% | 80% | Bi-weekly |
| BlueBerry Funded | 8% | 80% | Bi-weekly |
| City Traders Imperium | 10% | 80% | Bi-weekly |
| E8 Funding | 8% | 80% | Bi-weekly |
| FTMO | 10% | 80% | Bi-weekly |
| FXIFY | 10% | 80% | Bi-weekly |
| Fidelcrest | 10% | 80% | Monthly |
| Funded Next | 10% | 80% | Bi-weekly |
| Funded Trading Plus | 6% | 80% | Bi-weekly |
| Funding Pips | 10% | 80% | Bi-weekly |
| Goat Funded Trader | 10% | 80% | Bi-weekly |
| Maven Trading | 10% | 80% | Monthly |
| Ment Funding | 10% | 80% | Bi-weekly |
| MyFundedFX | 8% | 80% | Bi-weekly |
| The Funded Trader | 10% | 80% | Bi-weekly |
| The Trading Pit | 10% | 80% | Monthly |
| The5%ers | 6% | 80% | Bi-weekly |
Frequently Asked Questions
Does static drawdown trail?
No. That is the key difference — static drawdown stays at a fixed level and never rises, even as your account grows.
Which firms offer static drawdown?
Static drawdown is most common among forex prop firms like FTMO, MyFundedFX, and The5ers. It is rare among futures-focused firms.
Is static drawdown the best type?
For the trader, yes — static drawdown gives you the most room. But firms offering it may have stricter rules elsewhere (higher profit targets, lower splits, or longer evaluation periods) to compensate.