Prop firm drawdown rules: complete visual guide

What is drawdown?

Drawdown is the maximum amount your account can lose before the prop firm closes your account. It is the most important rule to understand before starting an evaluation.

There are three main types of drawdown in futures prop firms:

Static maximum drawdown

Static drawdown is the simplest to understand. It is calculated from your starting balance and never changes, regardless of how much profit you generate.

For example, if your account is $150,000 with a max drawdown of $2,500:

• Your loss limit is fixed at $147,500
• Even if your balance rises to $160,000, the limit stays at $147,500
• If your balance touches $147,500, you lose the account

Intraday trailing drawdown

Intraday trailing drawdown updates in real time. The minimum level rises each time your account reaches a new high, but never goes down.

Key characteristics:

• The drawdown level chases your maximum balance (high water mark) in real time
• The distance between your high and the drawdown level is always the same (e.g., $2,500)
• Your unrealized gains count — if your open position goes up $3,000 and then drops, the level already moved up

End of Day (EOD) trailing drawdown

EOD trailing drawdown works the same as intraday, but with a crucial difference: it only updates at the end of each trading day, not in real time.

Key differences from intraday:

• Intraday peaks do not move the trailing level
• Only the closing balance of each session matters
• This gives you more room to trade during the day without worrying about temporary spikes raising your trailing

Which is better?

Static drawdown is the most favorable for the trader. Among trailing types, EOD is better than intraday because it gives you more flexibility during the session.

Prop firms with static drawdown

• MyFundedFutures: All accounts use static drawdown (EOD)
• TakeProfitTrader: Static drawdown on most accounts

Prop firms with intraday trailing drawdown

• Apex Trader Funding: Real-time trailing drawdown

Prop firms with EOD trailing drawdown

• Bulenox: EOD trailing drawdown