Implementation guide · Prop Evaluation Rules
Static Drawdown: Calculating a Fixed Account Floor
Define a fixed loss floor from initial capital and test values above, at and below the boundary using an explicitly illustrative evaluation rule.
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Published by FxTrusts, a supplier of brokerage and prop firm technology. Prepared with AI-assisted research and drafting; reviewed against the cited public sources. Examples are illustrative. Product links describe our services.
Quick answer
A static drawdown floor is anchored to a specified reference value rather than moving upward with later profits. A simple model subtracts an allowed loss amount from initial simulated capital. The measured account value, equality rule, costs and adjustment policy must still be defined.
Write the fixed baseline explicitly
A percentage limit needs a denominator. Under one illustrative model, initial simulated capital of 50,000 units and an 8% allowed loss produce a 4,000-unit allowance and a 46,000-unit floor. Later profits do not move that floor unless the terms say otherwise. The label static should not be used to hide exceptions involving resets, payouts, account changes or other adjustments; document those separately.
Choose the value compared with the floor
A program can compare balance, equity or another precisely defined value with its limit. Using balance alone may ignore an open loss that an equity-based rule includes. Costs must be accounted for consistently so commission or financing is neither omitted nor subtracted twice. MQL5 exposes distinct account-value fields, while FTMO’s current objectives illustrate that a provider can define a static equity-based limit for a specific program. That example is not universal.
Treat equality as a requirement, not an assumption
The difference between below and at or below changes a boundary result. Test a value slightly above the floor, exactly equal to it and slightly below it using the policy’s actual precision. Avoid rounding an underlying value for rule evaluation merely because the interface shows two decimals. If the terms use a currency amount, specify the rounding policy and preserve sufficient precision to explain the decision.
Keep adjustments and consequences separate
An authorized correction may change account data or a rule baseline, but it should leave an audit trail rather than silently rewriting history. A floor calculation also does not specify what happens after a breach: review, restriction, account closure or another consequence comes from the applicable terms and operating policy. Retain the input snapshot and rule version so a participant’s appeal can be assessed against the rule that actually applied.
Boundary tests for a fictional static rule
Assume 50,000 units of initial simulated capital, an 8% fixed allowance, equity as the measured value and a breach only when equity is strictly below 46,000. Costs are already included in the equity values shown. These assumptions are invented for testing, and another program may treat equality differently.
| Measured equity | Comparison with 46,000 | Expected result under this rule |
|---|---|---|
| 46,000.01 | Above floor | No breach from this rule |
| 46,000.00 | Equal to floor | No breach because the condition is strictly below |
| 45,999.99 | Below floor | Breach condition reached |
| 53,000.00 after profit | Floor remains 46,000 | Static floor does not trail profits |
Implementation checklist
- Specify initial reference, loss allowance and any adjustment events.
- Choose the exact account field and included costs.
- Test above, equal and below boundaries without display-rounding shortcuts.
- Record the rule version, input snapshot and consequence policy separately.
Sources
These documents support the reference. Check the original publication for current requirements and the limits of its scope.
- FTMO program-specific trading objectivesftmo.com
- MQL5 account propertieswww.mql5.com
- Python decimal arithmetic and roundingdocs.python.org
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