Every prop firm evaluation has a maximum drawdown: the largest loss an account may take before it is breached. How that limit is measured matters as much as its size. The two common models are static drawdown and trailing drawdown.

What is a static drawdown?

A static drawdown is calculated once from the starting balance and stays fixed for the life of the account. If you start a $50,000 account with an 8% static drawdown, your floor is $46,000. Whether you are up $5,000 or down $2,000, the floor does not move.

Aveon Funding's Two Step Assessment uses an 8% static maximum drawdown, which gives traders a predictable, unchanging line to manage against.

What is a trailing drawdown?

A trailing drawdown is measured from the account's highest balance. When the account makes a new high, the loss floor moves up by the same amount. It never moves down. This rewards consistency but means unrealised gains you give back can count against you.

Aveon Funding's One Step Assessment uses a 6% trailing drawdown, and Instant Funding Lite uses a 5% trailing drawdown.

Side-by-side example on a $100,000 account

Daily drawdown is a separate limit

Most firms also apply a daily loss limit on top of the maximum drawdown. At Aveon, the daily limit is 5% on One Step, 4% on Two Step and 3% on Instant Funding Lite. On a $100,000 Two Step account that is $4,000 per day.

Which model is easier to pass?

• Static drawdown suits swing traders who hold through larger intraday swings.
• Trailing drawdown suits disciplined traders who lock in gains and avoid giving back open profit.
• Either way, sizing positions so that several consecutive losses stay well inside the daily limit is what keeps accounts alive.