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Every supported firm imposes a drawdown cap, but the formula isn’t the same. Two pieces matter: the percentage (5%, 8%, 10%) and the reference (anchored to starting balance, or anchored to the highest balance reached). The reference is what makes the same percentage feel different in practice.

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Static drawdown

Once the eval starts, the floor never moves. A 100,000accountatFTMOPhase1hasafloorat100,000 account at FTMO Phase 1 has a floor at 90,000 from day one. The trader can lose 10,000,recover,win10,000, recover, win 5,000, draw down again, recover — the floor is always $90,000. Used by: FTMO Phase 1, MyForexFunds, The5ers High Stakes.

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Trailing drawdown

The floor follows your highest closed-day balance. Every time a new high is set, the floor re-anchors. A 100,000FundingPipsZeroaccountthatgrowsto100,000 FundingPips Zero account that grows to 108,000 has its floor re-anchor to 108,000×0.95=108,000 × 0.95 = 102,600. The trader can no longer go below 102,600withoutbusting—eventhoughthey′veearned102,600 without busting — even though they've earned 8,000. Used by: FundingPips Zero, Apex Trader Funding, GetLeveraged Turbo.

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When each is stricter

Static is stricter on accounts that draw down deep early. If you bust to 93,000inweek1,FTMOisclosertoitsfloorthanFundingPipsis(FundingPips′floorhasn′tmovedfrom93,000 in week 1, FTMO is closer to its floor than FundingPips is (FundingPips' floor hasn't moved from 95,000 yet). Trailing is stricter on profitable accounts. The moment you turn profit, the trailing floor moves up; subsequent retraces are penalised harder. Per-firm reference:

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Intraday vs end-of-day

For trailing-DD firms, when the floor moves matters. Every firm in the supported set uses end-of-day closed balance to re-anchor, not intraday peak. An open trade that spikes to 110,000mid−dayandclosesat110,000 mid-day and closes at 107,000 won’t move the FundingPips floor — only the $107,000 close does. This means an open trade that’s deeply in profit but not yet closed isn’t ratcheting the floor on you.

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The strategy-side fix

Both rule types are fightable with conservative position sizing — never let a single trade lose more than ⅓ of the DD cushion. On Glitch Executor, the firm-mode position sizing calculator at /tools/position-sizing-firm-mode computes the largest lot size that respects both your risk-per-trade limit and the firm’s drawdown cushion. See related: consistency rule, Firm Mode overview.