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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 drawdown 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 session. Hit it once = evaluation over.

Why traders fail

They size for the profit target, not for the drawdown. 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 high-watertrailing DDstarting balance (locks here)
Equity curve rising, with the trailing drawdown line locking each new high.
Key takeaways
  • Trailing drawdown moves with your equity peak.
  • The daily loss limit is a hard circuit breaker.
  • Size for the DRAWDOWN, not the target.
  • 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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Educational simulation only. Not financial advice. Prop firm rules vary between companies — always read the official rules of the specific firm before trading.