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Maximum Loss and Trailing Drawdown

Updated


At a Glance

  • Your maximum loss is $1,000 / $2,000 / $3,000 by account size.
  • It is held as a floor that trails your best day's close upward.
  • No daily loss limit — size against the floor, not the day.
On this page5 sections

The Numbers

AccountStarting balanceMaximum lossStarting floorFloor locks atEOD equity that locks it
$25k Scale$25,000$1,000$24,000$25,100$26,100
$50k Scale$50,000$2,000$48,000$50,100$52,100
$100k Scale$100,000$3,000$97,000$100,100$103,100

On the $50k you have $2,000 of room to make a $3,000 target. See Evaluation Rules.

The floor stops moving once it reaches the lock level, and stays there for the life of the account, however far you go on — so from that point your room only ever grows. This is why many traders size smaller between $50,000 and $52,100: getting the lock set early is the cheapest protection available on the account. Note that the lock level sits $100 above the starting balance, so a locked account breaches before it can return to where it started.

How the Floor Moves

Two figures feed the calculation:

  • End-of-day marked equity. Your balance plus FPT's marked value of any open simulated positions at the close of the FPT Trading Day. Not balance alone.
  • Highest EOD marked equity. The highest such figure recorded so far in that stage.

The snapshot that moves your floor is taken at 11:59:59 PM Eastern, the close of the FPT Trading Day. FPT marks open positions from available market data; the exact mark-price calculation is one of the figures published before trading launches.

At each day's close, FPT computes a candidate and keeps whichever is higher:

Candidate floor = highest EOD marked equity − maximum loss

Active drawdown floor = the greater of (previous active floor, candidate floor)

Once the candidate reaches or exceeds starting balance + $100, the floor is set to exactly that level and stops for good.

DayEOD marked equityHighest EOD so farCandidate floorActive floorWhat happened
Start$50,000$50,000$48,000One maximum loss below the start
1$50,600$50,600$48,600$48,600New EOD high, floor trails up
2$50,200$50,600$48,600$48,600Losing day. The floor never moves down
3$51,400$51,400$49,400$49,400New EOD high, floor trails again
4$52,100$52,100$50,100$50,100, lockedThe candidate reaches the lock level
5$53,000$53,000$51,000$50,100Candidate is higher, but the floor has stopped

The Floor Applies at All Times

The floor is recalculated once a day, at the close, but it is live at every moment in between.

  1. Marked equity reaching or falling below the active floor at any moment ends the account at that moment, rather than at the day's end.
  2. Intraday gains do not raise the floor. Touching $52,400 at midday and closing at $50,900 moves your floor to $48,900 — the snapshot sets it, not the peak.
  3. An unrealised loss counts the same as a realised one, including on a position you intend to hold to resolution.

Positions may stay open across day-end where the platform permits.

Two Things Worth Sizing For

Your whole loss allowance is available in a single day. There is no daily loss limit, so nothing stops you at a set amount before the floor does — size against your distance from the floor rather than against the day, and your dashboard shows that distance continuously.

Your floor rises as you profit. Because a losing day sets no new high, two days can add up to more than one maximum loss: on a $25k account at the $24,000 floor, lose $350 and close at $24,650, then lose $700 the next day, and marked equity reaches $23,950 — $1,050 across the two days.

In the Funded Stage

The mechanism is unchanged in the funded stage. The maximum loss and active floor governing a funded account are shown on that account in your dashboard.

One rule is added. A payout cannot be approved if deducting it would place your marked equity at or below the active floor; the floor does not move down after a payout, and requesting one does not lock it. See Payout Rules.

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