Drawdown is the single biggest reason funded accounts get breached. Daily caps your loss in one day; overall caps your total loss before the account is killed — and on a trailing model that floor follows your profits up. Work out your exact stop-out levels, or check how close you are right now.
Quick preset — choose a firm
Your drawdown rule
$
= $5,000
%
= $10,000
%
Max total loss
$10,000
You are out if your balance hits $90,000
Breach breakdown
Daily loss limit
$5,000
Overall loss limit
$10,000
Stop-out balance
$90,000
Model
Static
Drawdown models differ by firm (start-of-day vs balance vs equity, static vs trailing). Always verify the exact rule on your firm before trading. Educational use only, not financial advice.
Every firm has a drawdown rule. Unlike the consistency or FLR caps, drawdown limits apply to every prop firm in our database — there is no “no rule” case. Pick a firm above to load its exact daily and overall limits.
FAQ
Drawdown rules — questions
What is the difference between daily and overall drawdown?
Daily drawdown caps how much you can lose in a single trading day, usually measured from your balance at the start of that day. Overall (or max) drawdown caps your total loss from the start before the account is closed for good. You can breach either one independently — a single brutal day can hit the daily limit even if your overall loss is small.
Static vs trailing — what is the catch?
A static overall limit sits at a fixed balance (your start minus the allowed loss) and never moves. A trailing limit starts there too, but rises as your balance makes new highs — so once you are up, you can give back less before breaching. Trailing is stricter: a winning run quietly raises the floor under you.
Is the limit measured on balance or equity?
It depends on the firm — some check closed-trade balance, others check live equity (including floating losses on open trades). Equity-based rules are stricter because an open drawdown can breach you before you ever close the trade. This tool uses equity for the checker; confirm which your firm uses.
How do I use the breach checker?
Enter your start-of-day balance and your current equity. The gauge shows how much of your tightest limit you have used — daily or overall, whichever is closer. At 100% you are at the breach point. It also tells you which limit is binding, so you know which one to watch.
What happens when I hit a drawdown limit?
A daily breach usually closes your trades and fails the day or the account, depending on the firm; an overall breach almost always ends the account permanently. There is no recovering a blown max drawdown — which is why sizing to stay well clear of both limits matters more than any single trade.
