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FundedFirm Static Drawdown
The Simple Answer
FundedFirm uses a static maximum drawdown across its accounts. With a static drawdown, your maximum loss level is fixed from the starting balance and does not move as your account grows, so the point at which the account fails always stays the same. FundedFirm sets the overall drawdown as a fixed percentage of the initial balance, so it is static.
In short, a static drawdown gives you a fixed and predictable failure point, while a trailing drawdown moves with your balance. The daily loss limit still applies on every account alongside the maximum drawdown.
Below is a breakdown of how the FundedFirm drawdown model applies across account types and stages.
Static vs Trailing Drawdown
Static drawdown, also called absolute drawdown, sets your maximum loss at a fixed level calculated from the starting balance. That floor never moves, so any profit you make increases your total cushion. Trailing drawdown, also called relative drawdown, moves the loss level up as your balance rises, which protects part of your gains but reduces the room you have left to draw down. Static is generally easier to manage because the failure point stays in one place.
Breakdown by Account Type
Instant
The Instant account has no evaluation phase and starts on a funded account. It uses a static drawdown of 6%.
Step 1
The Step 1 account uses a static drawdown of 6% in both the evaluation and the funded stage. Fixed at 6 percent of the initial balance and it does not change with profit.
Step 2
The Step 2 account uses a static drawdown of 10% in both the evaluation and the funded stage. The loss level is set from the starting balance and does not trail as your account grows.
Final Comments
FundedFirm applies a static maximum drawdown across its accounts, which suits traders who want a fixed and predictable failure point and the full benefit of their profits. On every account, the daily loss limit continues to apply alongside the maximum drawdown, and the exact percentages depend on the account size and program.
FAQ
Does FundedFirm use static or trailing drawdown?
FundedFirm uses a static maximum drawdown, which stays fixed from the starting balance across its accounts.
What is static drawdown?
Static drawdown sets your maximum loss at a fixed level based on the starting balance. It does not move as your account grows, so the point at which the account fails stays the same.
Which FundedFirm accounts use static drawdown?
All of them. Every FundedFirm account uses a static maximum drawdown.
Does the maximum drawdown trail on the funded stage?
No, the maximum drawdown stays static on the funded stage.
What is the difference between static and trailing drawdown?
A static drawdown keeps the loss level fixed from the starting balance, so your failure point never moves. A trailing drawdown moves the loss level up as your balance rises, which protects some profit but leaves you less room as you gain.