The short answer
A static maximum drawdown is a fixed floor that never moves, no matter how much profit you make. A trailing maximum drawdown starts as a floor below your balance and follows your equity upward as you make profit, locking in your gains as it rises. At UZO, Two Step uses a 12% static maximum drawdown, while the Instant family uses trailing.
Maximum drawdown is the lowest your account is ever allowed to fall before the breach line is hit. The difference between static and trailing is simply whether that line stays put or moves with your performance. Both are measured on your account value (equity, including open positions), and both are visible live on your dashboard so you always know how much room you have.
Static: a fixed floor
A static maximum drawdown is set once, from your starting balance, and does not change for the life of the account. Profit does not raise it, and a drawdown does not lower it. The floor is a constant number you can calculate on day one.
UZO's Two Step uses a 12% static maximum drawdown. On a $10,000 account, the floor sits at $8,800 and stays there. Whether your equity is $10,000, $12,000, or $20,000, the breach line is the same $8,800. The advantage is predictability: you always know your absolute worst case, and a good run never tightens your leash.
Static in one line
Set from your starting balance, fixed forever. Profit does not move it. Two Step = 12% static.
Trailing: a moving floor
A trailing maximum drawdown begins as a percentage below your starting balance, then trails your equity higher as you reach new peaks. When you make profit and your equity sets a new high, the floor rises with it by the same distance. If you then give some profit back, the floor does not fall again, so the gains it has already captured are protected.
UZO's Instant and Instant Pro use a 7% trailing maximum drawdown. Instant 24h uses a tighter 3% trailing maximum drawdown. Because the floor follows you up, the protected amount grows automatically as you trade well, and your exact current floor is always shown live on your dashboard rather than something you have to recompute by hand.
Trailing in one line
Starts below your balance, rises with new equity highs, then holds. Instant and Instant Pro = 7%, Instant 24h = 3%.
How trailing interacts with the Dynamic Risk Shield
A trailing floor does not chase you upward forever. As your equity climbs, the Dynamic Risk Shield trails right behind it, and once your profit crosses a set threshold, the Shield locks in place at your starting balance. From that point the floor stops moving with new highs, so a later losing run cannot wipe out the progress you have already locked.
In plain terms: early on, the trailing floor protects your gains by rising. Once you have proven the account, the Shield converts that protection into a fixed safety line at your starting capital, giving you room to keep trading without the floor tightening any further. Your dashboard shows where the floor currently sits at every moment.
Which product uses which
Product | Max drawdown type | Value |
Two Step | Static | 12% |
Instant | Trailing | 7% |
Instant Pro | Trailing | 7% |
Instant 24h | Trailing | 3% |
The maximum drawdown type and value for One Step are being finalized and will be confirmed on the product page and your dashboard. We will not list a number here until it is final.
Whichever product you trade, the live floor is always displayed on your dashboard, so you never have to guess how close you are to the line.
Related
Maximum drawdown explained
The Dynamic Risk Shield
Daily drawdown explained