PROP FIRM DRAWDOWN RULES
WHAT IS DRAWDOWN?
Drawdown is the loss from your account peak. Prop firms set maximum allowed drawdown.
DAILY DRAWDOWN
Maximum loss in one trading day. Usually 4-5%.
TOTAL DRAWDOWN
Maximum loss from starting balance. Usually 10-12%.
WHAT HAPPENS IF YOU BREACH?
Account termination. You lose the funded account.
HOW TO STAY SAFE
- Never risk more than 1-2% per trade
- Stop trading at 50% of daily limit
- Use proper position sizing
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