Prop Firm Drawdown Rules Compared
Drawdown rules decide how much room you have to be wrong. ForRealFunding uses a static 4% daily / 8% maximum on the 1-Step and a static 5% daily / 10% maximum on the 2-Step. This page explains the difference between static and trailing, daily and maximum, balance-based and equity-based, and compares the firms on all of it.
Who this matters for
Anyone choosing between a static and a trailing-drawdown firm before buying
Traders who want their maximum loss expressed in dollars, not just a percentage
Traders comparing a cheap firm against a more expensive one with materially different risk room
In this guide
- 1Daily vs maximum drawdown
- 2Static vs trailing (and why trailing is harder)
- 3Balance-based vs equity-based
- 4Firm-by-firm comparison table
- 5ForRealFunding's figures by model
- 6FAQ
For a full side-by-side table across firms, use the comparison tool — figures there are dated and re-verified rather than asserted here.
FAQ
What's the difference between daily and maximum drawdown?
Daily drawdown limits how much you can lose in a single trading day before the account is breached. Maximum drawdown is the total loss ceiling for the life of the evaluation or account, regardless of how many days it takes to reach it.
Static or trailing drawdown — which is easier?
Static drawdown is generally considered easier to manage because the floor doesn't move as your balance grows. Trailing drawdown locks in gains but can also lock in a tighter floor faster than a static model on the same account.
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Daily vs maximum drawdown, static vs trailing, balance vs equity — compared across the major prop firms, with ForRealFunding's figures.