Static Drawdown Explained
Your maximum loss limit is the total amount of loss your account can sustain. At any time, your balance or equity must remain above this limit, it cannot fall below the threshold set for your account.
➡️ The key point: this is a static drawdown, not a trailing drawdown.
Static drawdown means the limit is fixed from the start, based on your initial balance.
It does not move upward as you make profits.
Your maximum loss allowance stays the same throughout all stages, giving you a consistent and predictable risk boundary.
Example
Suppose your starting balance is $100,000 and your maximum loss limit is $5,000.
With a static drawdown, your account can never drop below $95,000 in balance or equity.
Even if you grow your account to $110,000, the loss limit remains at $95,000.
Unlike a trailing drawdown, which would shift upward as your profits increase, the static drawdown stays locked at the original level.
✅ This makes static drawdown easier to plan around: you always know your risk boundary, no matter how much your account grows.