Drawdown types compared: static, trailing and daily
Drawdown is the leading cause of failed challenges. Precise knowledge of your firm's calculation method is the highest-value information you can have.
Static
Floor fixed to the starting balance. Example: $100,000, 10% limit, floor $90,000, regardless of interim profit.
Most forgiving: each unit of profit widens the buffer.
Trailing
Floor tracks the highest balance. Example: +$4,000 moves a 6% floor from $94,000 to $98,000. Surrender that gain and the account breaches, despite being above the start balance.
Some firms freeze the floor at the starting balance. Program pages state the exact rule.
Daily limit
Usually measured from start-of-day balance or equity, commonly midnight server time, not Malaysian time. Floating losses count toward it.
Risk controls
Fixed risk per trade (0.5–1%), a daily stop after a preset loss, and no single position large enough to threaten the daily limit. See common mistakes.
FAQ
Best drawdown type?
Static offers the most room. Trailing is stricter, especially early, when there is little profit buffer.
Is the daily reset on Malaysian time?
Usually not; most firms reset at midnight server time. Confirm before trading.