Enter your prop firm account balance and drawdown rules. Find the exact dollar limit and trigger balance before a breach.
Most prop firms use one of two drawdown types. Knowing which one your firm uses changes how you manage your risk.
Static drawdown is calculated from your starting balance and never moves. If you start with $100,000 and have a 10% static drawdown, your account is breached if your balance drops below $90,000 at any point.
Trailing drawdown follows your highest balance. If you grow to $105,000, your floor rises to $95,000 (10% below the peak). Your max loss moves up with your profits, which makes this harder to manage. TopStep uses trailing drawdown on their Combine accounts.
EOD trailing is the same as trailing but only adjusts the floor at end of day, not intraday. This is more common on funded accounts at firms like Apex Trader Funding.
Is drawdown calculated on balance or equity?
This varies by firm and it matters a lot. Balance-based drawdown only counts closed trades. Equity-based drawdown includes open floating losses. If you have a large open loss that pushes equity below the floor, you breach even if your balance is fine. FTMO uses balance-based. Always check which method your firm uses.
Does the daily drawdown reset every day?
Yes. The daily drawdown limit resets at the start of each trading day, usually at midnight server time or at the market open. Your daily loss is calculated from your balance at the start of that day, not from the overall starting balance.
What triggers a drawdown breach?
Reaching or crossing the floor value triggers a breach. On most platforms this closes all open trades and terminates your account immediately. Some firms send a warning first. With a trailing drawdown, breaching at breakeven is possible if you grew your account and then gave back all profits.