Static drawdown

A static drawdown is a prop firm loss limit fixed at a set distance below the starting balance that never moves, whatever highs the account makes, so the trader's cushion grows with every profit kept and shrinks only with realised losses.

Senzoukria · Glossary · Updated September 2026

How it works

The threshold is starting balance minus allowance, computed once when the account is opened. It does not follow the peak. If the account rises, the cushion above the threshold rises by the same amount; if it falls, the cushion falls; the threshold itself stays put. The account fails when balance, or equity where the firm measures on open positions, reaches the threshold.

Static programs are often sold with a smaller allowance than trailing programs of the same nominal size, or at a higher price, because the rule is more forgiving once the account has profits. The allowance figure and the price should be read together.

Static versus trailing on the same trades

  • After a run of profits, a static threshold sits far below the account while a trailing threshold sits exactly one allowance below the peak. A subsequent loss of one allowance fails the trailing account and leaves the static one alive.
  • From the starting balance with no profits yet, the two rules are identical: both fail at starting balance minus allowance.
  • A locked trailing drawdown becomes static after the lock, but at a threshold that has already risen to the starting balance or to the firm's floor, not at the original threshold below it.

In Senzoukria

The Prop firm rules form encodes a static rule by answering Never, it is fixed at my starting balance to the question When does the limit move up, together with the Amount field of the Maximum drawdown block. The Program field is free text, so a trader can note the firm's name for the plan, such as Static, next to the rules. The Prop firm simulation and the account-split equity curve then use the fixed threshold when counting which reshuffled paths die on the drawdown, and the backtest gate criterion Max drawdown within the account's limit checks the worst drawdown of a run against the same amount.

Points that are easy to get wrong

  • Static does not mean the daily loss limit is absent. The two rules are independent and both can apply.
  • Static does not say whether open positions count. A firm can fix the threshold and still measure the breach on equity, so the question about open profit still has to be answered.
  • Withdrawals reduce the balance and therefore the cushion, unless the firm resets the threshold on payout. The payout rules decide.

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Frequently asked questions

Is a static drawdown always better for the trader than a trailing one?
It is more forgiving once the account is in profit, because gains keep widening the cushion. Firms compensate with a smaller allowance, a higher price or both, so the comparison has to be made on the full rule set and the fees rather than on the word static alone. On a record with no profits yet, the two rules fail at the same point.
Does a static drawdown reset after a payout?
It depends on the firm. Some keep the threshold at its original level, so a withdrawal that brings the balance down reduces the cushion; others reset the balance and the threshold after each payout. The agreement's payout section states which, and the value entered in the rules form should match it.

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