A static drawdown is a loss floor that is set once and never moves. On a $100,000 account with a 10% static maximum loss, the floor is $90,000 from day one until the account ends. It does not rise when you profit and does not fall when you lose. Only a fall below that one balance breaches the account.
This is the simplest drawdown to track, and the most forgiving for traders who build a cushion. Once you are up $10,000, you can give all of it back and still be safe, because the floor is still $90,000. The firms we track include plans built this way: FundedNext's Stellar 2-Step $100,000 plan uses a 10% static maximum loss, so its floor stays at $90,000.
The trap is reading 'static' as 'safe'. You can still lose the full 10%, and the daily loss limit still applies on top of it. A trader who loses 5% in a day and 5% the next has hit the static floor even without a single bad trade.
Before you buy, confirm the floor is static on the rules page rather than assuming it from the percentage alone. Prop trading can cost you every fee you pay.