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October 26, 2026 · 5 min read

Static vs Trailing Drawdown: What Every Prop Trader Should Know

By Usman Khalid, founder and owner of IXU Capital

A trailing drawdown follows your profits up; a static drawdown doesn't. How each works, with a worked example — and the limits on every IXU Capital account.

The maximum overall loss — the drawdown limit — ends more funded accounts than any other rule. How it is measured matters as much as the percentage.

Trailing drawdown

With a trailing drawdown, the loss limit follows your highest balance or equity upward. Make $3,000 on a $50,000 account with a $3,000 trailing limit and your floor rises from $47,000 to $50,000. You are in profit, yet you have no more room than on day one.

Static drawdown

A static drawdown is set once, from your starting balance, and never moves. On a $50,000 IXU One-Step Standard account the maximum overall loss is 6%, so the floor is $47,000 — whether you are down $500 or up $5,000.

A worked example

  • Starting balance: $50,000 on a One-Step Standard account (6% static).
  • Floor: $47,000, fixed for the life of the account.
  • You grow the account to $54,000. Your floor is still $47,000 — you have $7,000 of room.
  • Under a $3,000 trailing limit, the same account's floor would already have climbed to $51,000.

IXU Capital's loss limits by model

  • One-Step Standard: 6% overall, 4% daily.
  • Two-Step Standard: 10% overall, 5% daily.
  • Instant Funding: 6% overall, 3% daily.
  • Daily Payouts (One-Step and Two-Step): 8% overall, 4% daily.

Both limits are static and measured from your starting balance on every challenge, and both are hard limits: crossing either one ends the account.

Using a static drawdown well

  • Know your floor in dollars before you place a trade.
  • Early profit widens your cushion — protect it rather than spend it.
  • Size positions from the room you have left, not from the account size.

All IXU Capital accounts are simulated, and this article is educational, not financial advice.

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Who owns IXU Capital?

Usman Khalid is the founder and owner of IXU Capital. More about IXU Capital and its owner →

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