Funding Frontier Static Drawdown
The Simple Answer
Funding Frontier uses a static maximum drawdown of 10%, fixed to the initial account balance and applied the same way across the Trading Challenge, Verification and Funded Trader phases. On a $10,000 account, the maximum loss value stays at $9,000 for the life of the account, checked against both balance and equity.
Below is a breakdown of how the Funding Frontier 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
All Phases
Funding Frontier applies the same static 10% maximum drawdown across every phase, from the Trading Challenge through Verification to the Funded Trader stage. The floor is fixed to your initial balance and does not move as the account grows, and it is checked against both account balance and equity, alongside a 5% maximum daily loss.
Final Comments
Funding Frontier keeps its drawdown model simple: a static 10% maximum loss fixed to the initial balance, unchanged across all three phases. There is no trailing option, so the failure point you start with is the one you keep for the life of the account.
FAQ
Does Funding Frontier use static or trailing drawdown?
Funding Frontier uses a static maximum drawdown of 10%, fixed to the initial account balance across every phase.
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 Funding Frontier accounts use static drawdown?
All of them. The same static 10% maximum drawdown applies to the Trading Challenge, Verification and Funded Trader phases.
Does the maximum drawdown trail on the funded stage?
No. The 10% maximum drawdown stays static and fixed to the initial balance on the Funded Trader stage too.
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.