The maximum permitted loss is fixed and does not change as you make profits.
For example, on a 50K account with a $2,500 static drawdown (5% of the account), you must never fall below $47,500, even if your account has risen to 55K in the meantime.
It's the least restrictive type of drawdown. It gives you more freedom to manage your trades and doesn't penalise you for making profits.
Disclaimer: This comparison is for information only and does not constitute professional financial advice. Conditions can change, so always check the prop firm's official website before buying a challenge. Some links are affiliate links.
