Definition
Drawdown-from-peak (trailing drawdown)
Trailing drawdown is a maximum-loss floor that follows an account's equity up as it makes new highs, so the line to stay above is tied to peak equity, not the starting balance.
A static (absolute) drawdown floor never moves; a trailing floor rises with new equity highs and usually stops trailing once a set profit is locked in or it reaches the starting balance.
It is the rule that most often catches disciplined traders off guard, because the line moves on their best moment, not their worst. Which type applies is set by your firm's agreement.