Risk Management
Static Drawdown
Definition
A fixed drawdown limit calculated from the initial account balance that does not move regardless of profits.
How It Works
Static (or fixed) drawdown is set at account creation and never changes. A $100K account with 10% static drawdown has a permanent floor of $90K — no matter how high your balance goes.
This is the most trader-friendly drawdown type because your safety margin stays constant. Even if you grow the account to $120K, you only lose the account if it drops below $90K.
Static drawdown is offered by firms like FTMO and is generally preferred by traders because it allows more aggressive trading once profitable.
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