At Xpert Funding, drawdown refers to the maximum amount your trading account can decline before it’s considered breached. Understanding each drawdown type helps you manage risk, stay compliant with your plan, and trade with confidence.
Daily Drawdown (Equity-Based)
The Daily Drawdown sets a limit on how much your account’s equity can decrease within a single trading day.
It resets automatically every day at 00:00 UTC.
Calculated from the higher value between your balance and equity at the time of reset.
If equity drops below the allowed percentage during the day, the account breaches.
Purpose:
Prevents large single-day losses and encourages consistent, controlled trading.
Static (Fixed) Maximum Drawdown
A Static Drawdown sometimes called a fixed drawdown stays the same throughout your evaluation or funded phase.
Based on your initial starting balance.
Does not move upward when profits are made.
Once your balance or equity drops below this fixed threshold, the account is breached.
Purpose:
Teaches traders to protect the original balance and build discipline over longer periods of trading.
Trailing Maximum Drawdown
A Trailing Drawdown moves upward as you lock in profits on closed trades.
Starts a set percentage below your initial balance.
Trails your highest closed balance, not unrealized equity.
Once profits are secured, the safety limit adjusts upward to protect them.
The trailing limit never moves downward, even if your balance decreases later.
Purpose:
Rewards consistency and profit preservation while maintaining a defined risk limit.