Definitions
A static drawdown is a fixed distance below the starting balance. On a 100,000 account with a 10% static limit, the floor is 90,000 for the life of the account. A trailing drawdown is a fixed distance below a moving reference, usually the highest end-of-day balance. The floor rises when the reference rises and does not fall when the reference falls. Many trailing rules also lock. When the floor reaches the starting balance, it stops rising. After that point the rule behaves like a static floor at the starting balance.
A static example from FTMO
FTMO's 2-Step path states a maximum loss of 10% of the initial simulated capital, static. On a 100,000 account the floor is 90,000. If the account grows to 108,000, the floor remains at 90,000, so the room below the balance has grown from 10,000 to 18,000. Profit increases your room under a static rule.
A trailing example from Topstep
Topstep's Maximum Loss Limit article says the limit rises as the end-of-day balance grows and never moves down, and that once it reaches the starting balance it locks permanently. In the firm's example, a 50K Combine starts at 50,000 with the limit at 48,000. A profit of 500 lifts the balance to 50,500 and the limit to 48,500. A loss of 500 the next day returns the balance to 50,000, but the limit stays at 48,500. The room has shrunk from 2,000 to 1,500, even though the balance is back where it began.
A trailing example from The Trading Pit
On Futures Prime the drawdown trails the end-of-day closed balance, not intraday peaks. The firm's example uses a 100,000 account with a 3,000 drawdown, so the level starts at 97,000. An end-of-day balance of 102,000 trails the level to 99,000. A balance of 103,000 locks the level at 100,000, and it will not trail higher. After the lock, the account behaves like a static floor at the starting balance.
What the difference does to risk
Under a static floor, profit gives you room. Under a trailing floor, profit raises the floor and removes room until the lock. The same account can feel safe on day one and tight after a good week. A strategy that makes most of its profit early has the least room just when it is most likely to take a normal drawdown.
Intraday behavior
Whether the floor is tested against closed or open results matters as much as whether it moves. Topstep checks the floor on real-time unrealized profit and loss, so an open loss that touches it ends the account. The Trading Pit's trailing level follows closed balance, but slippage can still push a loss past a limit. The guide on intraday equity breaches explains why end-of-day tests miss these.
How to model each
For a static floor, compute floor equals start minus limit, and test the lowest equity of every day against it. For a trailing floor, keep a running maximum of the end-of-day balance, set floor equals the maximum minus the limit, cap it at the starting balance and test the lowest equity of each day against the floor of the previous close. Run both on your full trade history with timestamps. The drawdown tool can help.
Common failure modes
Applying an end-of-day balance to a rule enforced continuously on equity. Treating a simulated balance label as cash or buying power that can be withdrawn. Using a rule or price from a screenshot without its purchase date. Assuming a floor is static because the headline says 10%. Each is avoidable by reading the firm's definition and example.
Useful next step
Create a versioned record of the account rules, with the source article and its date, and test it against a timestamped ledger of trades and equity. Keep conclusions conditional unless they are verified with eligible real-world data. For firm-level numbers, see the drawdown rules comparison.
How this was sourced
Official material checked for this draft on 2026-10-27. Product terms, residence eligibility, promotions, payout rules and fees can change. Reverify before publishing or purchasing.
Editorial disclosure
QuantProp has no verified commercial relationship with the firm(s) discussed in this article. This is an independently drafted rules comparison, not an endorsement or proof of payout reliability. No affiliate links are active. Trading evaluations can involve fees and substantial loss or failure risk.
Revision log
2026-10-28: imported from the editorial pack dated 2026-10-27; approved for publication by the owner. Facts are as of 2026-10-27 and were not independently tested. 2026-10-28: Dropped 'Operational example': its text duplicated an earlier section word for word. 2026-10-28: Rewritten from a 290-word stub. Added definitions, the official Topstep and The Trading Pit trailing examples read on 2026-10-28, a static floor example from FTMO, a lock-in explanation, a modelling method and Q&A. The original example figures were kept.
Frequently asked questions
What is the difference between static and trailing drawdown?
A static drawdown is a fixed distance below the starting balance. A trailing drawdown follows a moving reference such as the highest end-of-day balance, so the floor rises with profit and does not fall.
Does a trailing drawdown ever stop trailing?
At Topstep and The Trading Pit it locks once the floor reaches the starting balance, and after that it behaves like a static floor at that level.
Is trailing drawdown measured on equity or balance?
It depends. Topstep checks real-time unrealized profit and loss. The Trading Pit's level follows closed end-of-day balance. Read the firm's definition for your plan.
Which is easier to trade under, static or trailing?
A static floor is easier to model because it never moves. A trailing floor needs a running high-water mark. Which suits you depends on your drawdown profile and timing of profits.
Where can I see official examples?
Topstep's Maximum Loss Limit article and The Trading Pit's Futures Prime rules article both give worked examples of a trailing floor, and FTMO's trading objectives page describes its static 10% maximum loss.