A maximum loss limit is the floor beneath your account. Hit it and the account ends. Whether that floor moves is the difference between static and trailing, and it changes how you should trade after a profitable stretch.
A static limit is calculated once, from your starting balance, and stays there. On a $100,000 account with an 8% static limit, the floor is $92,000 on day one and $92,000 three months later. If you trade the account up to $110,000, you now have $18,000 of room instead of $8,000. Profit has bought you margin for error.
A trailing limit follows your equity upward until it locks at your starting balance. On a $100,000 account with a 6% trailing limit, the floor begins at $94,000. Trade up to $104,000 and the floor has trailed up with you. Your room never widens the way it does under a static limit, and giving back gains can end an account that is still nominally in profit.
Neither is objectively better. If you scale into winners and hold them, a static limit rewards that. If you take profit quickly and rarely carry large open gains, trailing costs you less than it looks like it should.
At Vexorfund, two-phase, three-phase and the crypto plan use static limits. One-phase and the instant account use trailing limits that lock at the starting balance.
General information about trading rules and process. Not financial advice, and not a statement about what any trader will earn. All Vexorfund accounts are simulated and rewards are subject to the program rules and account review.