PropRuleRadarDecision intelligence

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LEARNING HUB · UNDERSTAND THE RULES

Start with the rules.

Trade informed. Nine topic paths and a comprehensive glossary make prop-trading rules clear for beginners.
Learning path · Step 4

Step 4 · Lesson

Drawdown types

The calculation method is part of the rule.

CONCEPT

Drawdown is a calculation method

Static, trailing, end-of-day and intraday describe different ways a boundary can be referenced or observed. The official program definition decides.

Simple example

Simplified example: a static boundary stays at 90. A trailing boundary may rise from 90 to 95 when its reference rises from 100 to 105.

ESSENTIAL TERMS

Understand prop trading from the start

Search for a term or read the library from top to bottom.

General orientation only. Provider and program rules vary; exact official evidence is binding. These examples do not recommend trading parameters.

Trailing drawdown
A loss boundary whose reference can move after gains. Trigger, reference and movement vary by provider and program.Think of a boundary that may follow a defined high-water reference; always read the official calculation rule.
Static drawdown
A loss boundary tied to a fixed reference under the applicable program rule. The exact basis still varies by program.The boundary does not become trailing merely because account values move.
End-of-day vs intraday drawdown
End-of-day uses a defined daily observation point; intraday can react during the trading day. Timing and basis vary by program.Equal percentages can behave differently when their observation times differ.
Max risk
A program-specific ceiling or restriction on exposure or risk. There is no universal PropRule Radar value.Check which positions, instruments or combined exposure the official rule includes.
Max risk per trade
The largest risk a rule permits for one trade or one defined trade group. The provider's calculation and consequence remain decisive.Check whether the rule refers to planned risk, realised loss, stop distance or combined positions.
Trade idea
One underlying trading decision that may include several entries, exits or related positions under a provider's rule.Splitting an idea into several orders does not necessarily create separate risk allowances.
Exposure limit
A ceiling on market exposure across positions, instruments, directions or accounts in the defined program context.It can differ from maximum loss and from risk per individual trade.
Balance vs equity
Balance generally reflects booked account results, while equity can also reflect open-position effects. The binding calculation is provider-specific.An equity rule may observe a different account state than a balance rule.
Daily loss
The maximum loss allowed within the program's defined daily window and calculation basis.Read the value together with basis, reset time, timezone, conditions and exceptions.
Maximum loss / maximum drawdown
The overall loss boundary for an exact program context. It may be static, trailing or otherwise calculated.The label alone does not reveal the calculation method.
Breach / violation
A failure to meet a binding program rule. Consequences and severity depend on the exact rule and context.A warning, restriction and account-ending breach are not interchangeable.
Profit target
The profit objective assigned to a specific challenge or evaluation phase.Step 1 and Step 2 can differ; never transfer one phase's value to another.
Minimum trading days
The minimum count of qualifying trading days required by an exact program phase, when applicable.A calendar day is not automatically a qualifying trading day; use the official definition.
Consistency rule
A provider-specific rule that can constrain how results are distributed or achieved. Its formula requires official evidence.If the formula is not confirmed for the applicable programme, PropRule Radar leaves the fact open.
Payout / payout cycle
Payout describes an eligible withdrawal; the payout cycle describes its program-specific timing or cadence.Eligibility and timing belong together and can vary by account phase.
Profit split
The program-specific share of eligible profits allocated to the trader and provider.A headline percentage does not replace payout eligibility, timing and other conditions.
Leverage
The provider-defined relationship between account exposure and available capital for the applicable instruments and context.A displayed ratio is not a recommendation and may differ by instrument or phase.
Lot / position limits
Program-specific limits on position size, lot size, position count or combined exposure.Check whether limits apply per trade, instrument, direction, account or in total.
Overnight holding
Holding a position across the provider's defined daily boundary. Permission and conditions vary by program.Allowed overnight holding does not automatically answer weekend or news holding.
Weekend holding
Holding or trading positions across the program's defined weekend period.Weekend and overnight rules remain separate unless official evidence joins them.
News trading
Trading or holding around provider-defined news events. Windows, event classes and account phases can differ.A conditional status means the details must be read before acting.
EA / Expert Advisor / algorithmic trading
An Expert Advisor (EA) is software that can assist or automate trading; algorithmic trading follows programmed rules. Programs can define permitted tools, ownership and prohibited behavior differently.An allowed status may still carry conditions and exceptions.
Copy trading
Replicating or coordinating trades across accounts or traders. Scope and permitted ownership patterns are provider-specific.Own-account copying and another person's signals can be treated differently.
Reset time / timezone
The time and timezone at which a daily rule window or reference is reset or observed.A clock time without its timezone is incomplete.
Account size
The nominal account amount attached to a program option. It is a scope label, not money freely available to withdraw.Fees, limits and phases can vary by account size, so compare only the same exact option.
Reset fee
A fee for restarting or resetting an eligible evaluation or account under the program terms.Availability, amount and what is reset vary by provider, program and account option.
Activation fee
A separate fee that can become due when a program moves to a later account state.It is not automatically included in the entry or subscription fee; exact terms vary.
Master account
A provider-specific name for an account state after or alongside an evaluation. It does not by itself prove live-market execution.Read the exact phase, simulation status, rules and payout conditions instead of relying on the label.
Challenge / evaluation / funded
Challenge or evaluation denotes an assessment phase; funded denotes a different account state. Names and rules vary.An evaluation fact must not be transferred to funded without exact-scope evidence.
Exact context
Provider, program, generation, phase and every applicable scope dimension.The same label can resolve differently in another exact context.
Evidence
The source record linked to a fact.Open it to inspect source, retrieval time and supported scope.
Open / not yet confirmed
The available evidence is not sufficient for a reliable answer.An open fact is not zero, false, allowed or prohibited.
NOT APPLICABLE
The category is explicitly not relevant to this context.Missing information stays open; it is not automatically not applicable.