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Risk Visualizer
Drawdown Visualizer
Understand the critical difference between trailing and static drawdown with interactive charts. See how each type affects your risk management.
Compare Both
Trade Sequence Visualization
Trailing Drawdown
Account Breached!
Balance Drawdown High Water
Static Drawdown
Balance Drawdown
Trailing Drawdown
The drawdown limit moves up with your profits. Once your balance reaches a new high, the drawdown level rises and never falls back down.
Harder to manage - locks in profits as risk
Punishes aggressive profit-taking
Often cheaper evaluation fees
Static Drawdown
The drawdown limit stays fixed at your starting balance. Your profits build a buffer above the limit, giving you more room to trade.
Easier to manage - profits build buffer
Better for beginners
Often higher evaluation fees
Trade-by-Trade Comparison
| Trade | P&L | Trailing Balance | Trailing DD | Static Balance | Static DD |
|---|---|---|---|---|---|
| #1 | +1000 | $51,000 | $49,000 | $51,000 | $48,000 |
| #2 | +750 | $51,750 | $49,750 | $51,750 | $48,000 |
| #3 | -500 | $51,250 | $49,750 | $51,250 | $48,000 |
| #4 | +1000 | $52,250 | $50,250 | $52,250 | $48,000 |
| #5 | +750 | $53,000 | $51,000 | $53,000 | $48,000 |
| #6 | +1250 | $54,250 | $52,250 | $54,250 | $48,000 |
| #7 | +1000 | $55,250 | $53,250 | $55,250 | $48,000 |
| #8 | -500 | $54,750 | $53,250 | $54,750 | $48,000 |
| #9 | +750 | $55,500 | $53,500 | $55,500 | $48,000 |
| #10 | +1000 | $56,500 | $54,500 | $56,500 | $48,000 |
Visual Comparison
See side-by-side how trailing and static drawdowns behave differently.
Trade-by-Trade
Follow a sample trade sequence to understand how drawdown limits move.
Risk Awareness
Understand which drawdown type matches your trading style and risk tolerance.
Frequently Asked Questions
What is the difference between trailing and static drawdown?
A static drawdown is a fixed floor: on a $50,000 account with a 4% ($2,000) static drawdown, your account fails only if the balance drops below $48,000, no matter how high it climbed first. A trailing drawdown moves up with your equity: if your balance peaks at $53,000, the limit trails up to $51,000 — so you can breach while still being above your starting balance.
Why is trailing drawdown riskier than static drawdown?
Because it converts your own profits into risk. Under a trailing drawdown, every new equity high raises the failure line behind you, so giving back profit can breach the account even when you are up overall. With a static drawdown, profit builds a permanent cushion. Two traders with identical trades can pass under a static rule and fail under a trailing one.
What is a typical drawdown limit at futures prop firms?
Most futures prop firms set the maximum drawdown at 2-5% of the account size — for example, $2,000 to $2,500 on a $50,000 account. Trailing drawdowns are the most common type for futures evaluations, while static drawdowns are usually marketed as a premium feature or offered on more expensive account tiers.
Does trailing drawdown include unrealized (open trade) profit?
It depends on the firm. Intraday trailing drawdowns update with every tick, including unrealized profit on open trades, while end-of-day (EOD) trailing drawdowns only update from your closing balance. Intraday trailing is the strictest variant — a trade that runs into profit and comes back can raise your limit without you ever banking the gain.
Do trailing drawdowns ever stop moving?
At many firms, yes. The trailing limit typically locks once it reaches your starting balance (or slightly above), after which it behaves like a static floor and your worst case is fixed. Until it locks, the safest mindset is to treat every open profit as if the limit has already moved up behind it.
Which is better for my trading style: trailing or static drawdown?
Scalpers who take profits quickly are less affected by trailing rules because they rarely hold large unrealized gains. Swing traders who let winners run are hit hardest by intraday trailing drawdowns and benefit most from static or EOD rules. If you hold trades for hours or overnight, an account with a static or EOD drawdown is usually worth the higher price.