Glossary · Drawdown
What is drawdown?
How far your account has fallen from a reference point, and the limit on that fall.
In prop trading, drawdown usually means the loss limit and the way it's measured. The three common types are static, trailing (intraday) and end-of-day trailing.
Understanding which one you have matters more than its size: a 6% trailing drawdown can be harder than a 10% static one.
Where drawdown matters
63 firms we've checked match “static drawdown”. The highest-scoring ones:
- Breakout1-Step Classic, 1-Step Pro +1
- DayTraders.comStatic
- FundingPips2 Step Standard, 2 Step Pro +2
- The5ersPro Growth (1-Step), High Stakes (2-Step) +1
- Lux Trading Firm1-Step Evaluation, Instant Funding (Insta)