Static Drawdown

A static drawdown is a risk-limit mechanism designed to fix the maximum allowable loss at a set level below the starting balance, regardless of how high the account climbs. The limit never moves.

Example: a $100,000 account with a 10% static drawdown can never fall below $90,000. Static models are simpler to plan around than trailing models because profits create genuine buffer: an account at $108,000 has $18,000 of room, not $8,000. This predictability is why experienced evaluation traders generally prefer static drawdown programs.

To calculate your exact breach level in dollars — for both static and trailing models — use the drawdown calculator.