Knowledge Base

Welcome to thePropTrade Knowledge, your go-to resource
for all things prop trading.

Content area
Classic (2-Step) Challenge FAQs

How is the Static Maximum Drawdown calculated on Classic (2-Step) account??

Estimated reading: 1 minute

The Static Maximum Drawdown is fixed at a level that does not change during the lifetime of the account and is calculated as a percentage of your starting balance.

Example – Static Drawdown

  • Starting balance: $100,000
  • Maximum static drawdown: 8%

Calculation:

$100,000 × 8% = $8,000

Your maximum allowed loss is $8,000, which means your account must not fall below:

$100,000 − $8,000 = $92,000

With a static drawdown, this limit stays fixed at $92,000.
It does not move, even if you make profits and your balance increases.

Share this Doc

How is the Static Maximum Drawdown calculated on Classic (2-Step) account??

Or copy link

CONTENTS