In prop trading, risk is the name of the game and how that risk is measured can make all the difference.

 Many traders get caught off guard by hidden traps in dynamic drawdown models, especially when they’re performing well.

At CoinProp, we believe traders shouldn’t be punished for making profits. That’s why we’ve chosen a static drawdown model a safer, more transparent way to measure risk. It protects your account, encourages proper risk management, and removes unnecessary pressure during growth phases.

Let’s break down how it works and why it matters.

1. What is a Static Drawdown Model?

In a static drawdown model, your maximum loss limit stays fixed based on your initial balance, not your highest equity. That means if you start with a $100,000 evaluation account and your drawdown limit is $6,000, you simply can’t go below $94,000 no matter how high your profits climb.

Compare that to a dynamic drawdown model, where your max loss level moves up as your profits increase. Sounds fair? Not really.

In a dynamic model, if you hit a new profit high and then give some of it back during normal volatility, your account could be breached even if you’re still profitable overall. It creates unnecessary risk and stress for traders who are otherwise performing well.

2. Why Static Drawdown is a Trader-Friendly Option

• ✅ Protects your profits: Once you earn profits, they’re yours to manage. You’re not penalized for pulling back slightly.

• ✅ No trailing trap: You can scale, take partial losses, or rebalance your strategy without the risk of hitting a floating loss cap.

• ✅ Encourages smart trading: Traders can take bigger moves with proper risk, instead of micromanaging every trade to avoid breaching a moving target.

• ✅ Psychological safety: You trade with less anxiety. You know exactly where the limit is — and it never changes.

In short, a static drawdown is fair. It aligns with how professional risk managers operate in real-world trading desks.

3. CoinProp’s Drawdown Rules at a Glance

Here’s how it works at CoinProp:

• Max Loss (Static Drawdown): 6% of starting balance

• Daily Loss Limit: 3% max loss per calendar day

• Profit Target: 9% to pass your evaluation

• Leverage: Up to 5x on crypto assets

And the best part? There’s no equity trailing. No hidden triggers. Just straightforward rules that you can plan around.

4. Real-World Example

Let’s say you’re in an evaluation with a $100,000 account:

• Your static drawdown limit is $94,000

• You make $5,000 in profit account equity is $105,000

• You then lose $2,000 now you’re at $103,000

Are you in trouble? No.

You’re still way above the $94,000 threshold, and you’re allowed to keep trading confidently.

In contrast, with dynamic drawdown, your trailing limit may have moved up to $99,000 and your $2,000 dip could have disqualified you. That’s how unfair and frustrating it can get.

5. Built for Consistency, Not Just Performance

CoinProp isn’t just here to test how fast you can grow an account we want to see how well you manage risk over time. Our static drawdown model rewards steady growth, smart trade management, and long-term thinking.

It’s not about catching a lucky trade. It’s about showing consistency and giving you the tools and breathing room to prove it.

Conclusion:

Prop trading should reward smart traders, not punish them for normal market behavior. CoinProp’s static drawdown model is part of our promise to support real-world trading skill not just numbers on a screen.

So if you’re tired of hidden traps and unpredictable rule enforcement, you’ll feel right at home with us.

🔐 Ready to trade with confidence?

 Try CoinProp’s evaluation challenge with static drawdown and see the difference for yourself.