Futures Prop Firms·Intermediate· 5 min

Drawdown rules — the trap most fail on

The single rule that fails more evaluations than anything else.

Trailing vs static drawdown

Static: your max is measured from your starting balance. Trailing: it 'follows' your highest balance up, then locks. Trailing is stricter.

Daily loss limit

Most firms also enforce a daily loss limit (often 3–5% of the account) that resets each . Hit it once = evaluation over.

Why traders fail

They size for the profit , not for the . One bad morning takes them out. Sizing for the drawdown first automatically keeps you inside the daily limit too.

Watch it on the chart

Chart breakdown

Equity curve rising, with the trailing drawdown line locking each new high.

Key takeaways

Trailing moves with your equity peak.
The daily loss limit is a hard circuit breaker.
Size for the , not the .
One rule violation = evaluation over, no appeals.

Quick check

Your $50k evaluation has a $2,500 trailing max drawdown. You get up to $52,000 profit. Your new drawdown line is…

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