At FundedSquad, maintaining account integrity and protecting trading capital is a key priority. Absolute, also called static drawdown, is a fixed limit on the total loss your account can experience, measured from the initial account balance. Unlike trailing drawdown, this limit does not move up as your account grows, it stays static at the starting account size.
How Absolute / Static Drawdown Works
Absolute drawdown ensures that you never lose more than a predetermined percentage of your starting balance. If the account loss reaches this fixed limit, your account will breach the rules, leading to disqualification.
Accounts Using Absolute / Static Drawdown
Account Type | Absolute / Static Drawdown |
2 Step Fast Evaluation | 8% |
2 Step Squad Evaluation | 12% |
Example
Let’s assume your 2 Step Fast Evaluation Account is $50,000, and the absolute drawdown limit is 8%:
8% of $50,000 = $4,000
If your account equity or balance falls to $46,000 at any time, you have reached the absolute drawdown limit.
Any trade that causes your account to go below $46,000 will result in account breach.
Proper management within your absolute drawdown limit ensures your trading account remains compliant and safe, building the discipline necessary to succeed.
For questions, contact support@fundedsquad.com.