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🏷 40% OFF ALL Lucid Trading Accounts Use Code VIBES » 🏷 40% OFF Lucid Trading Code VIBES »
Every prop firm uses one of four drawdown mechanics. Knowing which one your firm uses matters more than the dollar number on the rules page. This is the complete cross-listing of 85 firms grouped by mechanic.
How it works: MLL trails up at end-of-day close, then locks at starting balance permanently. Intraday equity drops don't reset it.
Best for: traders who want their starting capital protected after the lock event. The most forgiving mechanic — preferred by Paul.
How it works: MLL moves UP at end-of-day close, never locks. Keeps following equity-high forever. Intraday drops do not matter; only close matters.
Best for: traders who want maximum profit retention without locking. Strong for systematic strategies that close positions cleanly each day.
How it works: MLL follows intraday equity-high tick by tick. A 30-second spike up = MLL moves UP at that instant. Highest day-to-day vol mechanic.
Best for: high-conviction traders who size carefully. Most stressful mechanic; requires real-time risk management.
How it works: MLL is a fixed dollar amount below starting balance. Never moves. Simplest mechanic to track.
Best for: beginners or traders who prefer clarity over flexibility. The cleanest math.
Now that you know the 4 mechanics, plug your firm + plan + equity into the calculator. Get your current MLL, distance-to-lock, and risk buffer — modeled on the exact mechanic.
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