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Lesson 3 of 10 · Beginner
Static vs trailing drawdown: which floor applies to you?
By MFC Research · rules current as of 3 Oct 2026
A static floor stays where it started. A trailing floor rises with your best balance and never falls back. At MFC the 2-Step floor is static, the 1-Step floor trails your highest closed balance, and Instant Funded starts wider and then tightens.
Static: the 2-Step
On the 2-Step the maximum loss is 10% of the starting balance and it never moves. A $10,000 account always has its floor at $9,000. Every dollar of profit adds to the distance between you and the floor.
Trailing: the 1-Step
On the 1-Step the 10% floor follows your highest closed balance. Close the day at $10,600 and the floor moves up by $600. It stops moving once your closed profit reaches +10%: from then on it stays at the starting balance. Until that point, a winning run does not buy you extra room, it only moves the floor.
Tightening: Instant Funded
Instant Funded starts with a 6% floor based on the starting balance and tightens it to 5% after +5% profit. It does not trail every new high. Prediction Markets uses a 6% floor that trails the equity high-water mark without a lock.
How to trade a moving floor
On a trailing account the cushion after a strong week is the same 10% you started with, measured from a higher point. Reduce size after a new high, not after a loss, and never assume that profit you made yesterday is protection today.
Check yourself
Accounts are simulated and use real market quotes. Rules shown here come from the help center; your program terms apply.
