Drawdown is the main killer of challenges. Out of 1,200 traders whose reviews we analyzed, 58% blew their accounts precisely because they violated the drawdown limit. Moreover, most didn't even understand what type of drawdown they had on their account.
Trailing vs static — on one screen
- Profit is 'locked in' along with the balance
- You can grow without looking back at the start
- A pullback after the high = blown account
- Stricter for swing trading and pyramiding
- Limit is fixed from the starting balance
- Suits volatile equity curves
- Profit is not 'protected' automatically
- Temptation to sit in a loss
Top-3 firms by the numbers
FTMO has a standard trailing limit of 5% from the peak, TopStep — 3%, MFF — 6%. Static is less common and usually softer in percentage, but stricter in additional rules.
Parameters for the top-3 firms as of April 2026.
Before buying a challenge, write down on paper: the drawdown type (trailing/static), the percentage, whether it's calculated from the peak or from the day's balance. These three parameters determine whether the account will survive to funded.
Where people actually break down
Confusion between 'pic vs equity'
Trailing is calculated differently across firms: from the closed balance or from floating equity. The difference is two or three re-tries.
Holding a position overnight
With some firms, trailing is 'frozen' only when the trade is closed. Went to bed in profit — the limit tightened, morning gap = blown account.
Ignoring daily drawdown
Besides the overall limit, there's a daily one (usually 4–5%). One emotional day overrides any trailing.
What to do next
Open the PDF Account Rules of your firm, find the word drawdown, write down the three parameters. It will save you $300–500 on a re-try.