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Funding Traders Static Drawdown
The Simple Answer
Funding Traders uses a static maximum drawdown on some accounts and a trailing maximum drawdown on others. The Instant Funding and 2 Step (Pro) accounts use a static drawdown, where the loss level is fixed from the starting balance and does not move. The 1 Step (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 Funding Traders 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 Funding
The Instant Funding account has no evaluation phase and starts on a funded account. It uses a static drawdown. The drawdown trails until you are 3 percent in profit, then locks to the initial account size.
1 Step (Pro)
The 1 Step (Pro) account uses a trailing drawdown of 10% in both the evaluation and the funded stage. The loss level trails relative to your highest recorded balance.
2 Step (Pro)
The 2 Step (Pro) account uses a static drawdown in both the evaluation and the funded stage. The loss level is measured from the challenge account size and does not trail.
Final Comments
Funding Traders uses a static maximum drawdown on the Instant Funding and 2 Step (Pro) accounts and a trailing drawdown on the 1 Step (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.
To see the exact drawdown amounts and account sizes for each challenge, view the Funding Traders challenges on Propvator.
FAQ
Does Funding Traders use static or trailing drawdown?
It depends on the account. The Instant Funding and 2 Step (Pro) accounts use a static drawdown, while the 1 Step (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 Funding Traders accounts use static drawdown?
The Instant Funding and 2 Step (Pro) accounts. The other accounts use a trailing drawdown.
Does the maximum drawdown trail on the funded stage?
On the Instant Funding and 2 Step (Pro) accounts the drawdown stays static on the funded stage, while on the 1 Step (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.