Prop firm drawdown calculator.

How prop firms count the limits

Every prop firm challenge has two loss limits. Break either one, even for a moment, and the account is gone.

• Daily loss limit: how far your equity may fall during one day, counted from your balance when the firm's day began. Open trades count: a trade that is down $3,000 uses $3,000 of the limit even if you never close it.
• What the % is taken of: some firms take 5% of the account size, others 5% of today's starting balance. After a good day those are different amounts. We tested what that does in Your daily loss limit: 5% of what?
• Maximum loss limit: the lowest your equity may ever go. Static = a fixed level, e.g. 90,000 on a 100,000 account. Trailing = it moves up as your balance makes new highs, so profit you made can be given back faster than you think.
• The floor that counts is the higher of the two. The calculator shows which one you would hit first.

Example: a 100,000 challenge

Account size 100,000, daily limit 5% of the account size, maximum loss 10% static. You started the day at 101,000 and your equity is now 99,500.

• Daily floor: 101,000 − 5,000 = 96,000
• Maximum loss floor: 100,000 − 10,000 = 90,000
• The daily floor is higher, so it hits first. Room left today: 99,500 − 96,000 = $3,500 (3.5% of the account).
• At 1% risk per trade ($1,000), that is 3 losing trades in a row before the day is over for good.

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