Prop Rules Check / independent guide
How to read a trailing drawdown rule.
Understand trailing drawdown, high-water marks and floating equity before comparing prop firm evaluations.
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01 / analysis
A trailing threshold follows a reference point.
Unlike a fixed maximum-loss rule, a trailing threshold can move as the account reaches a new high-water mark. The important question is not only the percentage or dollar amount, but when the threshold moves, whether it locks, and whether it is calculated from balance or equity.
02 / analysis
Questions to answer in the provider terms.
Check whether floating profit moves the threshold, whether open positions count, when the threshold stops trailing, how commissions are treated, and what happens after a payout or reset. A rule that looks similar on paper can behave differently during live positions.
03 / analysis
Compare the mechanism, not a headline number.
Use the drawdown comparison to locate a dated record, then open the provider’s current terms. This guide is educational and does not estimate passing probability or tell you which program to choose.