Trailing vs. Static Drawdown, Explained

What is drawdown?

In futures prop trading, drawdown is the maximum amount your account balance or equity is allowed to fall from its highest point before you breach the firm’s risk rule and lose the account. Every vetted firm enforces some form of drawdown limit — the details of how that limit behaves are what actually vary.

Static vs. trailing drawdown

A static drawdown floor is fixed at your starting balance and never moves, regardless of how much profit you make. A trailing drawdown floor rises as your account reaches new highs, which means the exact dollar amount you’re allowed to lose can shrink over time as you become profitable.

End-of-day vs. intraday measurement

Separately from whether the floor is static or trailing, firms differ in when that floor is recalculated. An end-of-day floor only updates once per day, at the session close — intraday swings don’t move it. An intraday floor updates continuously in real time as your account reaches new highs during the trading session.

Why type and measurement timing are separate dimensions

Drawdown type (static or trailing) and measurement timing (end-of-day or intraday) are independent facts — knowing one doesn’t tell you the other. A static floor can be measured either way, and so can a trailing floor. LegitPropFirm tracks both separately so you can compare firms on the exact combination that matters to your trading style, rather than a single blended label.

What “resets on funding” means — and what it does not mean

Some firms recalculate your drawdown floor fresh, from your funded account’s own starting balance, the moment you pass evaluation and go live. LegitPropFirm records this as a simple yes/no fact: does the floor reset at funding, or does it carry over from evaluation.

This fact alone does not tell you what happens next. A firm that carries the floor over from evaluation might keep it actively trailing, or might freeze it in place — the mechanism afterward varies by firm and isn’t something this single fact certifies. Treat “Resets on Funding” as answering exactly one narrow question, not as a full description of a firm’s funded-stage risk mechanics.

Evaluation vs. funded-stage limitation

Drawdown mechanics can differ between the evaluation stage and the funded stage — for example, a firm might measure drawdown end-of-day during evaluation but intraday once funded. LegitPropFirm’s structured catalogue does not always separately track both stages for every account. The type and measurement values shown below should not be assumed to describe both stages identically. Where stage-specific mechanics matter to your trading, confirm the firm’s current official rules directly — this is not necessarily the only case where a stage difference exists, and the full extent across the catalogue has not been systematically certified.

Current LegitPropFirm catalogue comparison

Drawdown type, measurement timing, and reset-on-funding facts for every account across LegitPropFirm’s vetted futures prop firms, kept current as the underlying data changes.

How to read LegitPropFirm’s table

Each row shows three independent, literal facts: Type (Trailing, Static, or a Transition mechanism that changes from end-of-day trailing to static once funded), Measured (End of day or Intraday), and Resets on Funding (Yes or No). “Not yet certified” means LegitPropFirm has not yet independently verified that specific fact for that account — it is not the same as a certified negative, and this page never guesses which one applies.

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