Static drawdown can be found in the Ascended (2-Step) and Astral (3-Step) challenge program.

Static drawdown is a fixed loss limit that does not change, regardless of account performance. It is calculated as a percentage of the initial account balance. Once the static drawdown limit is reached, the account is closed.

If you start with a $100,000 account and have an 8% maximum drawdown limit, your maximum allowable loss limit is $8,000. This means that if your account balance or equity drops below $92,000, it would be considered a violation of this rule. To prevent any breaches, it is crucial to maintain your account balance or equity above $92,000

Trailing drawdown can be found in the Thunderbolt (1-Step) and Vanguard (Instant funding) challenge program.

A trailing drawdown adjusts based on the highest account equity reached, which is known as the High Water-Mark. The High Water-Mark represents the peak equity the account has achieved at any point in time and is used as the reference point for calculating the drawdown.

Let’s say you start with a $100,000 demo account. You have a daily drawdown limit of 4% and your trailing drawdown is 6%. This means that your daily drawdown limit is set at $96,000, and your trailing drawdown starts at $94,000. If you make $6,000 in simulated profit, bringing your balance up to $106,000, the trailing drawdown locks in at $100,000 once you’ve gained 6% above the starting balance. From that point, the trailing drawdown no longer follows your profits.