Core Prop Firm Tool

Drawdown Calculator

Drawdown kills more prop firm accounts than bad trades. Calculate your exact breach level, remaining buffer, and recovery math. Then simulate it with your real trades.

Drawdown Types Compared

TypeFloor Moves?When?Difficulty
StaticNeverSet at account openingMost forgiving
Trailing EODEnd of dayWhen closing balance exceeds peakModerate
Trailing IntradayReal-timeEvery new equity highStrictest

Why Drawdown Math Is the Most Important Skill in Prop Trading

Every other calculation -- position size, risk-reward, profit target -- is downstream of drawdown math. If you do not know your exact breach level, remaining buffer, and how many losing trades you can survive, you are flying blind.

On FTMO with 10% static drawdown on a $100K account, your floor is $90,000 and never moves. After growing to $105,000, you have $15,000 of room. On TopStep with trailing EOD drawdown, that same $105K close raises your floor to $95,000 -- you only have $10,000 of room despite making $5,000 in profit.

On Apex with trailing intraday drawdown, if your equity touches $105K for even one second, the floor jumps to $95K immediately. Give back those gains and you have less room than when you started. This is why 70% of Apex failures happen after winning streaks.

Frequently Asked Questions

What is drawdown in prop firm trading?

Drawdown is the maximum amount your account equity can decline from its peak before the firm terminates your account. It is the single most important rule in prop firm trading. There are three types: static drawdown (floor never moves), trailing EOD drawdown (floor moves up at end of day), and trailing intraday drawdown (floor moves up in real-time). Each type requires a different risk management approach.

How do I calculate max drawdown on a prop firm?

Max drawdown = Starting Balance x Drawdown Percentage. On FTMO $100K with 10% max drawdown, your breach level is $90,000. With static drawdown, this floor stays at $90K forever. With trailing drawdown, the floor rises as your equity reaches new highs. If your account peaks at $105K, trailing drawdown moves the floor to $95K.

What is the difference between static and trailing drawdown?

Static drawdown sets your breach level once at account opening and never changes it. Profits create real buffer above the floor. Trailing drawdown raises your breach level as your equity reaches new highs, meaning profits do not create lasting buffer. Static is more forgiving. Trailing is stricter. Most prop firm failures on trailing accounts happen when traders do not understand this distinction.

Which prop firms use static drawdown?

FTMO, FundedNext (in some challenge types), and The5%ers use static drawdown. TopStep uses trailing EOD drawdown. Apex Trader Funding uses trailing intraday drawdown (the strictest type). Always check the specific drawdown type before choosing a firm -- it dramatically affects your survival probability.