Static vs trailing drawdown: the rule that decides your funded account

The rule that ends most funded accounts isn't the profit target — it's the drawdown. And whether your firm uses a static or a trailing maximum drawdown changes everything about how you should trade.

Static drawdown: the floor stays put

With a static maximum drawdown, your loss limit is fixed at your starting balance minus a set amount, and it never moves. On a $100,000 account with an 8% static drawdown, the floor sits at $92,000 — whether your balance is $95,000 or $130,000. As your account grows, your breathing room grows with it.

Trailing drawdown: the floor chases you up

A trailing drawdown moves up as your balance makes new highs, but never comes back down. Make $5,000 and the floor rises by $5,000; give some back and you can breach even on a trade that was in profit. It punishes the natural give-and-take of scaling into winners.

Why it matters for your style

If you scale into positions or let winners run, a static drawdown is far less stressful: the floor doesn't tighten every time you tap a new high. A trailing drawdown asks you to protect unrealised gains almost as carefully as your capital.

How TradeForFund does it

TradeForFund uses a static maximum drawdown — 8% on the Forex two-step and 9% on the Crypto two-step — fixed at your starting balance, and it does not trail. No floor chasing your highs. Combined with no time limit and no minimum trading days, it is built to let disciplined traders trade their plan.