Overview
Static Drawdown, also known as absolute drawdown, offers a fixed drawdown level based on your initial starting balance. This type of drawdown remains constant, regardless of account peaks or trading gains. Static Drawdown is well-suited to traders who prefer straightforward risk limits that do not change with account performance, providing predictability and a clear-cut risk threshold.
How it works
With Static Drawdown, your maximum loss level is set at the beginning and remains unchanged. For example, if you start with a $100,000 simulated account and a Static Drawdown of $10,000, your Maximum Drawdown level will always be $90,000.
Unlike Relative Drawdown, Static Drawdown does not adjust with account highs or new closed balance peaks, so you have a stable reference point for risk regardless of gains. This approach helps traders focus on longer-term growth without frequent adjustments to the drawdown limit.
Example
For a $100,000 simulated account with a Static Drawdown of 10%:
Starting Balance: $100,000
Maximum Drawdown: $90,000 (set at 10% of the starting balance and does not move)
The Maximum Drawdown remains $90,000 even if the simulated account balance grows beyond $100,000, making Static Drawdown a simple and predictable way to manage risk.
As always, if you have any queries, you can use our live chat, which is available 24 hours a day, on our website. You can also submit support tickets by emailing support@fundedtradingplus.com and someone from the team will get back to you as soon as they are able.
You can learn more about Static, Relative, and Daily Drawdown by following the links below. Please use these resources to help you to understand how each of these drawdown types apply to our programs:
To understand more about Relative Drawdown, click here.
To understand more about Daily Drawdown, click here.