Static vs trailing drawdown, explained with NIFTY examples

Every funded account has a maximum loss. How that limit is calculated changes how you should trade.

Static drawdown

A static drawdown is fixed relative to the starting balance. On a ₹10L account with a 10% static max loss, your equity can never fall below ₹9,00,000, no matter how much profit you make first. It's forgiving: once you're up, you have more room.

End-of-day trailing drawdown

A trailing drawdown follows your highest end-of-day balance. On a ₹10L 1-Step account with 8% trailing, if you close a day at ₹10,40,000 your floor moves to ₹9,60,000. Once the floor reaches the starting balance (₹10,00,000) it stops trailing.

Which should you choose?

• Static suits traders with bigger swings and lower win rates
• Trailing suits traders with steady, consistent equity curves
• Both measure on equity, so floating losses count