Funded Trading10 min readJun 28, 2026

Prop Firm Drawdown Rules Compared (2025 Edition)

Trailing vs. static drawdown, daily loss calculations and payout policies across the major firms — and how each one should change your risk model.

Why the fine print is the strategy

Two firms offering "$100K accounts with 10% drawdown" can imply completely different risk budgets once you read how drawdown is measured. Trailing drawdown that locks at breakeven effectively halves your usable risk in the early weeks.

Comparison highlights

Static drawdown firms allow steady fixed-fractional sizing from day one.
Trailing (EOD) requires banking a buffer before trading normal size.
Trailing (intraday high-water) is the most restrictive — open-trade profit counts against you.

Sizing implications

For trailing intraday rules, I cap risk at 0.5% until a 4% buffer exists. For static rules, 0.75% from the start is sustainable with a two-loss daily stop.