> ## Documentation Index
> Fetch the complete documentation index at: https://docs.glitchexecutor.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Drawdown math

> Trailing vs static drawdown, how the floor moves, and the equity-curve scenarios where each is stricter. The exact formula every firm uses + the per-firm reference value.

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.

## Static drawdown

```
floor = starting_balance × (1 − drawdown_pct)
```

Once the eval starts, the floor never moves. A $100,000 account at FTMO Phase 1 has a floor at $90,000 from day one. The trader can lose $10,000, recover, win $5,000, draw down again, recover — the floor is always \$90,000.

**Used by:** FTMO Phase 1, MyForexFunds, The5ers High Stakes.

## Trailing drawdown

```
floor = max(starting_balance, current_high_balance) × (1 − drawdown_pct)
```

The floor follows your highest closed-day balance. Every time a new high is set, the floor re-anchors. A $100,000 FundingPips Zero account that grows to $108,000 has its floor re-anchor to $108,000 × 0.95 = $102,600. The trader can no longer go below $102,600 without busting — even though they've earned $8,000.

**Used by:** FundingPips Zero, Apex Trader Funding, GetLeveraged Turbo.

## When each is stricter

Static is stricter on accounts that draw down deep early. If you bust to $93,000 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:

| Firm                | %   | Reference | Floor on $100k profitable to $108k |
| ------------------- | --- | --------- | ---------------------------------- |
| FundingPips Zero    | 5%  | Trailing  | \$102,600                          |
| FTMO Phase 1        | 10% | Static    | \$90,000                           |
| MyForexFunds        | 8%  | Static    | \$92,000                           |
| Apex Trader Funding | 5%  | Trailing  | \$102,600                          |
| The5ers High Stakes | 10% | Static    | \$90,000                           |
| GetLeveraged Turbo  | 6%  | Trailing  | \$101,520                          |

## 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 $110,000 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.

## 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](https://glitchexecutor.com/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](/concepts/consistency-rule), [Firm Mode overview](/concepts/firm-mode).