Static vs Trailing Drawdown Explained
Static drawdown stays tied to the initial balance. Trailing drawdown follows a high-water mark, either by a percentage or a fixed allowance. These models produce different floors after the same gain.
At an initial $100K and later $110K high
| Model | Initial floor | Floor at $110K high |
|---|---|---|
| 8% static | $92,000 | $92,000 |
| 6% percentage trailing | $94,000 | $103,400 |
| $6,000 fixed trailing | $94,000 | $104,000 |
OA Core: a fixed floor
OA Core uses an 8% static drawdown from the initial account balance. On a $100,000 account the floor is $92,000. Profits and withdrawals do not change that floor. The daily loss rule still applies independently.
OA Flex: an equity-high floor
OA Flex uses a 6% trailing drawdown. The floor is 94% of the equity high: at $100,000 it is $94,000; at a $110,000 equity high it is $103,400. This percentage-of-high model is different from a fixed $6,000 trailing allowance.
The current FAQ states that a withdrawal resets the OA Flex trailing floor. If a payout returns the balance to $100,000, the floor recalculates to $94,000. Do not assume that another firm, or an ordinary losing trade, permits the same reset.
Monitor equity and daily limits together
Open-position losses, commissions, swaps and execution changes can reduce equity. A remaining overall drawdown allowance does not override a smaller daily loss allowance. Confirm the exact breach boundary and daily reference calculation in your account before trading.
Payouts are a separate event
A trading loss ordinarily does not lower a high-water mark. A payout may have different contractual treatment. OA Flex’s FAQ specifies a withdrawal reset; a generic trailing model must not silently assume it.