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What is the Static Drawdown?

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Written by Sharon Segal

The Static Drawdown is a fixed drawdown level based on the account’s original starting balance. 📊

Unlike trailing drawdown models, the drawdown does not move upward as your account grows.
This means the minimum allowed balance or equity stays the same throughout the entire life of the account. 🔒

✨ Example

Let’s say you have a $100,000 account with a 6% Static Drawdown:

  • Your minimum allowed equity is fixed at $94,000

  • Even if your account grows to $110,000 or higher, the drawdown level will still remain at $94,000

If your equity falls below $94,000, the account will be considered breached. ⚠️

The Static Drawdown never trails or adjusts upward. It always remains based on the original starting balance.

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