Recipients will open this exact evaluation size & daily drawdown floor.
How to Use the Prop Firm Drawdown Guard in 3 Simple Steps
Input your initial evaluation balance (e.g. $100,000 for FTMO, FundedNext, or Topstep).
Default is 5% daily limit. Enter your midnight starting balance to compute trailing loss buffers.
Review your exact allowable dollar loss ($5,000) and how many 1% risk trades you have before disqualification.
Frequently Asked Questions (Prop Firm Drawdown & Rules)
Google Search VerifiedHow is the 5% daily drawdown calculated on FTMO and FundedNext?
The 5% daily loss limit is calculated using your account balance or equity at the 00:00 CE(S)T midnight server reset. On a $100,000 account, your maximum daily allowable loss is $5,000, meaning equity cannot breach $95,000 at any second during that trading day.
Does daily drawdown reset at midnight server time?
Yes, daily loss limits reset every day at midnight server time (typically 00:00 CET/CEST). Any floating open profits or losses at midnight establish the new benchmark equity for the subsequent day.
What is the difference between equity-based and balance-based drawdown?
Balance-based drawdown only tracks closed trades, whereas equity-based (trailing) drawdown measures open unrealized floating drawdown. Modern prop firms disqualify accounts if floating equity breaches the limit at any second.
How many 1% risk trades can I take before reaching the daily loss limit?
On a 5% limit, 1% risk allows 5 consecutive losses. Institutional prop firm traders risk 0.5% per trade to provide a safety margin of 10 consecutive attempts without breaching rules.