Static drawdown
A static drawdown is a fixed loss floor set at account opening that never moves, regardless of how much profit the account makes.
How it works
The floor sits at a fixed amount below the starting balance and stays there permanently. Profit accumulates above it without changing the constraint, so the distance between balance and floor grows with every winning day. This is the most forgiving of the three common models and the least common on evaluations, though several firms offer it as a plan variant.
Why it matters on a funded account
For a systematic strategy a static floor means the risk calculation is done once and remains valid. Trailing models require the size calculation to be repeated as the floor moves; a static floor does not. Where a firm offers both, the static plan usually carries a higher fee or a lower profit split — the forgiveness is priced.
Read next
Part of the Puravida Edge prop trading glossary. Firm-specific figures verified September 2026; rules change frequently — confirm on the firm's site.