Static drawdown
A maximum drawdown whose floor is fixed at the starting balance minus the allowed loss and never moves.
On a $100,000 account with a 10% static drawdown, the floor is $90,000 for the whole challenge. Profits add room: at $105,000 you have $15,000 before the floor.
This is the most forgiving drawdown type, because you never lose room by making money. It is also the only type where the classic gambler’s-ruin formula applies directly.
Related
General definition. Rules differ between firms and change over time; your firm’s current terms always take precedence.