What is Daily Drawdown?
The maximum percentage or dollar loss allowed within a single trading day — a hard limit used by most prop firms to prevent catastrophic single-day losses.
Daily drawdown is the maximum loss permitted within one trading day before you must stop trading. It is a core rule in almost every prop firm challenge and funded account program.
Typical prop firm daily drawdown rules:
| Firm | Daily Drawdown | Calculation |
|---|---|---|
| FTMO | 5% of account | From daily starting balance |
| MyFundedFX | 5% of account | From daily starting balance |
| E8 Funding | 5% of account | From daily starting balance |
How it is calculated:
Most firms calculate daily drawdown from your equity at the start of the trading day — meaning open floating P&L counts.
Example: $100,000 account, 5% daily limit = $5,000 maximum daily loss.
Why daily drawdown matters:
Without a daily limit, a single catastrophic trading session could wipe out weeks of progress. The 5% daily limit forces traders to stop after a bad day — protecting the remaining capital and the trader's psychology.
Managing daily drawdown:
→ [Calculate your daily drawdown floor](/calculators/prop-firm-daily-drawdown-calculator)
Related Calculators
FTMO Calculator
Track your FTMO daily drawdown limit in real time. Pre-configured for FTMO's 5% daily loss rule on Challenge and Verification accounts.
MyFundedFX Calc
Track your MyFundedFX daily drawdown in real time. Pre-configured for MyFundedFX's daily loss limits across all account sizes.
Daily Drawdown
Track your prop firm daily drawdown limit in real time. Avoid breaching account rules with this FTMO, MyFundedFX, and Topstep-compatible calculator.