What is a static drawdown?

Q: What is a static drawdown?

A static drawdown floor is fixed at your starting balance minus the drawdown amount, and it never moves. Profit you make is room you keep: with a $25,000 account and a $1,250 static drawdown, the floor is $23,750 whether your balance is $25,100 or $28,000. The check is the same as on a trailing account: your equity, open positions included, is compared with the floor every few seconds, and falling below it closes the account. A static floor is easier to live with once you are ahead. The trade-off is that the amount of room you start with is usually smaller than on a trailing account, because the room never shrinks. Bedrock $25K Static Drawdown uses a static drawdown of $1,250.

Risk managementHow each rule is measured, what ends an evaluation, what merely pauses it, the two clocks every account carries, and the strategies that are not allowed.

A static drawdown floor is fixed at your starting balance minus the drawdown amount, and it never moves. Profit you make is room you keep: with a $25,000 account and a $1,250 static drawdown, the floor is $23,750 whether your balance is $25,100 or $28,000.

The check is the same as on a trailing account: your equity, open positions included, is compared with the floor every few seconds, and falling below it closes the account.

A static floor is easier to live with once you are ahead. The trade-off is that the amount of room you start with is usually smaller than on a trailing account, because the room never shrinks.

Bedrock $25K Static Drawdown uses a static drawdown of $1,250.

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