Prop Firm Drawdown Rules Explained: Balance-Based vs Equity-Based Trailing Loss
FV FinanceVetted Risk & Mathematics Desk Risk Protocol Guide • Prop Firm Capital Preservation • Live 2026 Audit Key Takeaways: Drawdown Mechanics Static Balance Drawdown: The loss limit stays fixed relative to the starting balance (used by FTMO and The5ers). Balance-Based Daily Drawdown: Daily limit resets at server midnight based purely on settled balance (used…