Static vs trailing drawdown
A drawdown percentage is not enough information. You also need to know which reference point creates the floor, whether that reference moves, when it resets, and whether the rule watches balance or equity.
Reviewed 16 August 2026 · PropGo-specific rules are identified explicitly
Static drawdown: a fixed floor
A static overall floor is calculated from the starting balance and does not move upward after profits. PropGo's standard formula is:
For a $10,000 Pulse challenge with a 6% overall limit, the floor is $9,400. If equity grows to $10,600, that overall floor remains $9,400.
Trailing daily drawdown: a moving floor
PropGo's daily floor follows the highest equity observed during the current UTC day. The allowance is always calculated from initial balance:
With a $10,000 initial balance and a 3% daily limit, the allowance is $300. If today's observed peak is $10,600, the daily floor becomes $10,300. A later fall in equity does not lower that floor during the same UTC day.
Worked example: which limit binds?
| Input or result | Daily trailing | Overall static |
|---|---|---|
| Initial balance | $10,000 | $10,000 |
| Rule | 3% = $300 | 6% = $600 |
| Reference | Today's peak: $10,600 | Initial: $10,000 |
| Floor | $10,300 | $9,400 |
| Room at $10,450 equity | $150 | $1,050 |
The daily floor is higher, so it is the binding floor. At $10,450 equity, the usable room is $150—not $600 and not $1,050.
What changes at the UTC-day boundary?
The daily peak resets. If the first fresh snapshot of the new day is $10,450, the new daily floor begins at $10,150. The overall static floor remains $9,400. New gains during that UTC day can move the daily floor upward again.
Equity versus balance
PropGo checks both floors against equity, so unrealized loss matters immediately. A flat closed balance above the floor does not protect an account whose open position pulls equity below it.
Common mistakes
- Treating “3% daily drawdown” as a fresh fixed $300 loss budget at every moment.
- Calculating the daily trail from current balance instead of the highest observed equity that UTC day.
- Watching only the overall floor when the daily floor is higher.
- Ignoring unrealized P&L because the position has not closed.
- Assuming another provider's terms use the same reset time or reference value.
Frequently asked questions
Does PropGo daily drawdown reset?
The intraday peak resets on each new UTC day. The allowance remains a percentage of initial balance, and the new daily floor then trails that day’s observed equity peak.
Does the PropGo overall floor move after a profit?
No. The standard overall drawdown is static from initial balance. The floor does not rise with gains.
Which floor controls the account?
Both apply at the same time. The higher floor is the binding floor because equity would cross it first.