Understanding your drawdown model
Static, trailing balance, trailing equity and end-of-day trailing, and how Alpha Ledger tracks each.
The drawdown model is the rule that ends most challenges, and the four models behave very differently.
Static
Your floor is fixed at the starting balance minus the maximum loss and never moves. Every dollar of profit is a dollar of extra room, permanently.
Trailing balance
The floor follows your closed balance upwards and never comes back down. Banking profit raises the floor with it, so profit buys you no extra room.
Trailing equity
The floor follows your highest equity, including unrealised profit. A trade that goes 2% in your favour and comes back has permanently raised your floor. Giving back an open profit is a cost, not a neutral event.
End-of-day trailing
Common on futures programs. The floor trails your end-of-day balance and usually stops trailing once it reaches the starting balance plus a buffer. Intraday spikes do not count against you.
How Alpha Ledger tracks it
The Prop firm page shows your actual floor and the exact distance to it, computed with your program's model rather than a generic one. The Rules tab explains which model applies and what it means for you.
If you change firms, change the program on the account — the same trades produce a different amount of room under a different model, and using the wrong one gives you false confidence exactly where it is most expensive.