{"term":{"slug":"static-drawdown","term":"Static Drawdown","definition":"A fixed maximum loss threshold set at account opening that never moves, regardless of how much profit you accumulate. Your drawdown floor stays at the same level for the lifetime of the account.","extendedExplanation":"Static drawdown is widely considered the most trader-friendly drawdown type. The floor is set once when the account is opened and never changes. If you start a $100K account with a 10% static drawdown, your floor is $90,000 permanently.\n\nThe key advantage is that profits create a genuine cushion. If you grow the account to $115,000, you have $25,000 of room before hitting the $90,000 floor. With trailing drawdown, that same $15,000 profit would have raised the floor to $105,000, giving you only $10,000 of room.\n\nFirms like FTMO, The5%ers, and FundedNext use static drawdown. Traders who prefer swing trading or holding through news events typically favor static drawdown firms because temporary adverse excursions are less likely to terminate the account.","exampleWithNumbers":"On FTMO $100K with 10% static drawdown: floor is permanently at $90,000. You grow the account to $120,000. Your cushion is $30,000. Even if you give back $20,000 in losses, your balance at $100,000 is still $10,000 above the floor. With trailing drawdown, that same scenario would have a floor at $110,000 and you would have been terminated.","category":"drawdown","relatedTerms":["trailing-drawdown","drawdown-floor","balance-based-drawdown","daily-loss-limit"]},"_links":{"self":"https://runvigil.app/api/glossary/static-drawdown","page":"https://runvigil.app/learn/static-drawdown","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}