Prop firm challenges with trailing drawdown

What is trailing drawdown?

The maximum loss threshold follows your account value: as you make profits, the threshold rises with it.

For example, on a 50K account with a $2,500 trailing drawdown (5% of the account), reaching 52K raises the threshold to $49,500. Falling below that threshold fails the account.

It's the most demanding type of drawdown. Your risk management needs to be spot on, and you can lose the account even after good results.