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Alpha Funded Static Drawdown
The Simple Answer
Alpha Funded uses a static maximum drawdown on some accounts and a trailing maximum drawdown on others. The 1 Step and 2 Step accounts use a static drawdown, where the loss level is fixed from the starting balance and does not move. The Instant / Pay Later PRO account uses a trailing drawdown, where the loss level follows your balance upward.
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 Alpha Funded 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 / Pay Later PRO
The Instant / Pay Later PRO account has no evaluation phase and starts on a funded account. It uses a trailing drawdown. The total drawdown on the instant and pay later accounts is trailing.
1 Step
The 1 Step account uses a static drawdown of 10% in both the evaluation and the funded stage. The total loss limit is static, 10 percent of the initial balance, and stays fixed regardless of growth.
2 Step
The 2 Step 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
Alpha Funded uses a static maximum drawdown on the 1 Step and 2 Step accounts and a trailing drawdown on the Instant / Pay Later PRO account. Traders who specifically want a static, fixed failure point should choose one of the static accounts. 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 Alpha Funded use static or trailing drawdown?
It depends on the account. The 1 Step and 2 Step accounts use a static drawdown, while the Instant / Pay Later PRO account uses a trailing drawdown.
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 Alpha Funded accounts use static drawdown?
The 1 Step and 2 Step accounts. The other accounts use a trailing drawdown.
Does the maximum drawdown trail on the funded stage?
On the 1 Step and 2 Step accounts the drawdown stays static on the funded stage, while on the Instant / Pay Later PRO account it trails.
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.