Trailing vs static drawdown, explained simply

Drawdown is the maximum your account is allowed to fall before the challenge fails. But from where it's measured changes everything, and it's the rule that catches most traders off guard.

Static drawdown

Measured from your starting balance. On a €10,000 account with 10% max, you fail if the balance drops below €9,000, always. As you profit, your buffer grows and the floor stays put. This is the forgiving version.

Trailing drawdown

Measured from your highest balance reached (equity peak). The floor follows you up. If you're up to €11,000, a 10% trailing drawdown puts your fail line at €9,900: you can now fail while still in profit versus your start. Many traders pass the hard part, relax, and get knocked out by a trailing floor they forgot was rising.

What to do about it

Know which type your firm uses before you trade a single lot, and watch your distance to the floor live. TradeDiscipline models both: set the toggle and the app shows your real drawdown headroom at every moment.