Drawdown Calculator
Track your drawdown and stay within your prop firm's limits.
Current Drawdown
5%
Remaining Before Breach
$5000
Max Allowed Loss
$10000
You can lose $5000 more before breaching the 10% drawdown limit.
Compare prop firms by drawdown rules
Frequently Asked Questions
What is drawdown in prop firm trading?+
Drawdown is the percentage decline from your account’s peak value. FTMO allows a maximum 10% drawdown — if your $100,000 account falls below $90,000 at any point, you fail the challenge.
What is the difference between max drawdown and daily loss limit?+
Max drawdown is the total account decline allowed (e.g., FTMO 10% = $10,000 on a $100K account). Daily loss limit is the maximum you can lose in a single trading day (FTMO 5% = $5,000/day). Breaching either ends your challenge.
Does FTMO use balance-based or equity-based drawdown?+
FTMO uses balance-based drawdown for their Standard accounts. Your drawdown is calculated from your starting balance, not your peak equity. This means profits don’t move your drawdown limit up — it stays fixed from day one.
What happens when I breach the drawdown limit?+
If you breach FTMO’s 10% max drawdown, your challenge is immediately failed. You would need to purchase a new challenge to try again. That’s why monitoring your drawdown in real-time is critical.
How can I avoid breaching my drawdown limit?+
Risk 0.5–1% per trade maximum, never add to losing positions, always use stop losses, stop trading if you reach 50–70% of your daily loss limit, and avoid high-impact news events with large positions.