Drawdown: the rule that ends most challenges
If one rule deserves your full attention, it's drawdown. Knowing exactly how your firm measures it beats any strategy tweak.
Static
The floor is fixed from your starting balance. $100,000 with a 10% limit means the account dies below $90,000, however much you made first.
Most forgiving version: every dollar of profit is extra cushion.
Trailing
The floor follows your peak balance up. Make $4,000 and a 6% trailing floor climbs from $94,000 to $98,000. Give it back and you're out, even above your starting balance.
Some firms stop the trail once the floor reaches the starting balance. Each program page has the exact rule.
Daily limit
Usually measured from balance or equity at the start of the trading day, typically midnight on the firm's server clock rather than Vietnam time. Floating losses count, so an open trade can trip it.
Our tips
Fixed, small risk per trade (0.5–1%), a daily stop after a set loss, and never one position big enough to threaten the daily limit. More in the passing guide.
Quick answers
Best drawdown type?
Static gives the most room. Trailing is tougher, especially early, when there's no profit cushion.
Does the day reset at midnight in Vietnam?
Usually not; most firms reset at midnight server time. Check before you trade.