What is Max Loss (overall drawdown) and is it static or trailing?

TL;DR

PropXP Max Loss is static (fixed), anchored to your starting balance, and it’s equity-based (floating + costs count). It does not trail up, there is no trailing drawdown in PropXP.

How it works: No trailing Drawdown

• Static max loss means your breach line is fixed from day one:
• Breach line = starting balance − (Max Loss % × starting balance).
• It’s checked on equity, so open positions and fees count.
• If your equity prints below the threshold, that’s a hard breach.

Common gotchas

• “Trailing drawdown” firms move the line up as you profit. PropXP doesn’t. Static means: the floor stays put.
• A big floating loss can breach you even if you’re “up overall” on closed trades. Equity is the judge.
• Overnight swap/fees can chip equity (especially if you’re holding).
• Static drawdown sometimes gives the impression that you have a lot of room and punishes revenge trading.

Values table per account type

Example

Starting balance $50,000:

• Two-Phase max loss 10% → breach line $45,000.
• One-Phase/Instant Funding max loss 6% → breach line $47,000.

Related FAQs

• What is Max Daily Loss (daily drawdown) and how is it calculated?
• Do spreads/commissions/swaps count toward drawdown?
• Slippage & micro-breaches: “I only went over by $0.01”