Prop Firm Risk Rules
A funded evaluation adds rules a personal account never has to deal with, and most breaches don’t come from one big reckless trade. They come from a trader who plans around their own risk tolerance and forgets the account is running by different rules than they are. The usual three rules Most prop firm evaluations combine a daily loss limit, a hard cap on losses within a single day, usually 4-5% of account size, a maximum overall drawdown, a hard cap on total loss from either the starting balance or the account’s peak, commonly 8-10%, and a profit target, a required gain, often 8-10% for the first phase and sometimes lower for a second one, to pass. Every firm sets its own numbers, but that basic shape, daily limit, max drawdown, profit target, is close to universal across the industry. Compare rules across specific firms on the prop firms comparison tool. ...