The Static Drawdown is used in our Ascended (2-Step) and Astral (3-Step) challenge programs. It is a fixed loss limit - meaning it does not change, no matter how your account performs.
This drawdown is calculated as a percentage of your starting account balance and once it’s reached, the account is automatically closed.
Example
Suppose you start with a $100,000 account and your maximum static drawdown is 8%:
Your maximum allowable loss is therefore $8,000.
If your account balance or equity drops below $92,000, it will be considered a violation of this rule.
Because the limit is fixed, it does not move up with profits - it always references your starting balance. This is different from Trailing Drawdown, which adjusts dynamically with your equity.
Why We Use It
The static drawdown is designed to encourage consistent risk management. It ensures that traders can demonstrate responsible trading habits without exceeding a fixed risk limit, regardless of temporary gains or losses.
Maintaining your account above the static drawdown limit helps protect both your challenge progress and the integrity of the funding program.