The "Floating Profit Drawdown" Trap

Is 'Relative/Floating Drawdown' the dirtiest rule in the prop industry?"

Static drawdown measures from your initial balance, but floating/relative drawdown calculates your limit based on unrealized equity peaks. If you're up $5,000 in open trades and price pulls back $3,000, you can blow your account while still technically being up $2,000 overall. Have you ever gotten liquidated on an overall profitable account because of floating equity tracking?