Max Drawdown
Your absolute loss ceiling
The maximum drawdown is the total amount your account can lose from its starting balance before being terminated. Breach it at any point and the account is closed — no exceptions.
| Type | How it works | Firms |
|---|---|---|
| Static | Fixed floor from starting balance. Never moves up as you profit — every dollar of profit adds safety buffer. | Rare in futures evals. Some funded accounts lock to static once the trail reaches the start balance. |
| EOD Trailing | Floor rises at end of each day based on your highest closing balance. Locks permanently once it reaches starting balance. | Tradeify, Lucid, TradeDay EOD (eval), Top One, Apex EOD |
| Intraday Trailing | Floor moves tick-by-tick including unrealized profits. An open winner that reverses can breach your floor even if you close flat. | MFFU Rapid, TradeDay Intraday, Apex Intraday |
⚠ Critical
Intraday trailing is the most dangerous. A $2,000 open profit that reverses to flat means your floor has permanently risen $2,000 — leaving you with $2,000 less buffer even though your P&L is unchanged.Daily Loss Limit
Single-day risk cap
The DLL is the maximum amount you can lose in a single trading session. Hit it and trading is paused for the day — on most firms this does not fail the account, it just locks you out until the next session.
| Calculation | Detail |
|---|---|
| Balance-based | Based on your account balance at the start of the day. More forgiving — a profitable morning doesn't change your limit. |
| Equity-based | Based on your highest equity during the day. A morning spike that reverses can shrink your effective DLL significantly. |
💡 Tip
Never risk more than 80% of your DLL in a single session. The remaining 20% is your buffer against slippage and spread widening.Firms with no DLL: MFFU (all plans), TradeDay, Tradeify, FundedNext Futures
Profit Target
What you need to pass
The profit target is the minimum gain required to pass the evaluation phase. You must hit it without breaching any other rules simultaneously.
| Market | Typical Target | Range |
|---|---|---|
| Futures ($50K) | $3,000 (6%) | $1,500–$4,000 |
| Futures ($100K) | $6,000 (6%) | $3,000–$8,000 |
⚠ Watch out
Some firms adjust your profit target upward if you breach the consistency rule. Always check your dashboard — the target shown on day 1 may not be the target you need to hit on day 8.Consistency Rule
No one-day miracles
The consistency rule prevents you from passing on one lucky day. It caps how much of your total profit can come from any single trading session.
| Firm / Plan | Rule | Phase |
|---|---|---|
| Tradeify Select | Max 40% per day in eval | Eval only |
| MFFU Core | Max 40% per cycle funded | Funded only |
| TradeDay | Max 30% per day in eval | Eval only |
| LucidFlex / LucidDaily | Max 40% per day in eval (50% add-on) | Eval only |
| Apex Trader Funding | Max 50% per payout cycle (PA only) | PA only |
💡 Tip
If your consistency rule is 30% and you have a big day early, don't panic — keep trading small until your other days dilute that percentage below the cap.News Trading
High-impact event rules
Many firms restrict trading around Tier 1 economic events — NFP, CPI, FOMC, GDP — due to extreme volatility and spread widening. Rules vary from soft restrictions to automatic liquidation.
| Firm | News Rule |
|---|---|
| MFFU (all plans) | No T1 events — 2 min before/after, flat required |
| Tradeify Select/Growth | Fully allowed — no restrictions |
| TradeDay | Restricted — auto-liquidates 2 min before/after |
| TakeProfitTrader | Restricted — no trading during news |
⚠ Critical
Auto-liquidation firms like TradeDay close your positions automatically at news time — including if you're deep in profit. Set your economic calendar alert 5 minutes early, not 2.Profit Splits
How much you actually keep
The profit split is the percentage of your trading profits you receive. Most firms start at 70–80% and scale up to 90% or higher as you build a track record.
| Firm | Starting Split | Max Split |
|---|---|---|
| Tradeify (all) | 90% | 90% |
| Lucid (all plans) | 90% | 90% |
| MFFU Core/Pro | 80% | 80% |
| MFFU Rapid | 90% | 90% |
| Apex Trader Funding | 100% | 100% (capped per payout) |
💡 Tip
A 100% split with a low payout cap (like Apex at $1,500–$3,000 per cycle) can net you less than a 90% split with an uncapped structure. Always calculate monthly extraction potential, not just the headline percentage.Scaling Plans
Growing your account size
Scaling plans allow consistently profitable funded traders to access larger capital allocations over time. The mechanics vary significantly between firms.
| Firm | Scaling Mechanic | Max |
|---|---|---|
| Apex Trader Funding | No scaling — buy additional accounts | 20 PAs |
| Tradeify | Elite program after 5 payouts (live CME) | 5 Live accounts |
| MFFU Pro | Live transition after $100K cumulative payouts | Live account |
Prohibited Strategies & Behaviours
What will get your account terminated
Beyond the standard risk rules, all prop firms prohibit certain trading behaviours that exploit evaluation mechanics or create unfair risk. Violations typically result in immediate account termination with no refund.
| Behaviour | Why it's banned | Common at firms |
|---|---|---|
| Hedging across accounts | Holding opposite positions on the same instrument across two accounts at the same firm to guarantee a pass on one while sacrificing the other. | All firms |
| HFT / tick scalping | High-frequency strategies that exploit minor execution delays or liquidity gaps. Incompatible with simulated execution environments. | Most firms |
| Copy trading (external signals) | Using signal services that simultaneously trade identical setups across hundreds of funded accounts — creates systemic risk for the firm. | Most firms — some allow copy trading within personal accounts |
| Martingale / grid strategies | Strategies that double position size after losses. These inevitably hit drawdown limits when they fail and are considered reckless risk management. | Most firms |
| Account sharing / brokering | Having another person trade your account, or trading accounts on behalf of multiple people simultaneously. | All firms |
| Manipulation / latency arbitrage | Exploiting quote latency, price feed differences between brokers, or news release timing to front-run moves. | All firms |
⚠ Critical
Firms use pattern-detection software that flags accounts matching known exploit patterns — even if each individual trade looks legitimate. A sequence of perfectly-timed news trades or suspiciously consistent results can trigger a manual review.Quick Reference
| Firm | Drawdown Type | Daily Loss Limit | Consistency |
|---|---|---|---|
| Tradeify SelectFUTURES | EOD Trailing | None | 40% eval only |
| Tradeify GrowthFUTURES | EOD Trailing | Soft DLL eval | 35% funded |
| MFFU CoreFUTURES | EOD Trailing | None | 40% funded |
| MFFU RapidFUTURES | Intraday Trailing | None | None funded |
| LucidFlexFUTURES | EOD Trailing | Optional | 40% eval |
| TradeDay EODFUTURES | EOD Trailing | None | 30% eval |
| Apex EOD 4.0FUTURES | EOD Trailing | DLL eval only | 50% PA only |
| TakeProfitTraderFUTURES | EOD Trailing | None | 30% funded |
Prop Firm Glossary
Maximum Loss Limit (MLL)
The total drawdown allowed from the account starting balance before termination. Also called max drawdown or trailing max loss depending on the firm.
Daily Loss Limit (DLL)
The maximum amount you can lose in a single trading session. Hitting it suspends trading for the day but usually doesn't terminate the account.
EOD Trailing Drawdown
Drawdown floor that only adjusts once at market close based on your highest closing balance. The safest drawdown model for active traders.
Intraday Trailing Drawdown
Drawdown floor that moves in real time including unrealized profits. An open winner that reverses can breach your floor even if you close flat.
Static Drawdown
Drawdown floor fixed at the starting balance level. Never moves up as you profit — every dollar earned adds to your safety buffer.
Consistency Rule
A cap on how much of your total profit can come from a single day, expressed as a percentage. Prevents passing on one lucky session.
Performance Account (PA)
Apex Trader Funding's term for a funded account after passing evaluation. Payout ladder, consistency rule and reduced contract limits apply.
Drawdown Lock
The point where a trailing drawdown stops moving and becomes a fixed floor permanently. Typically occurs when your balance exceeds starting balance + the drawdown amount.
Sim Funded
A funded account trading on simulated capital. Payouts are real cash but the positions are not placed on live markets. Most prop firms operate this way.
Live Funded
A funded account trading real capital on actual exchanges. Achieved through Elite programs (Tradeify), PRO+ (Take Profit Trader), or MFFU's live transition after $100K in payouts.
Profit Split
The percentage of net trading profits you keep. Ranges from 50% (TradeDay sim, under $4K profit) to 100% (Apex PA).
Tier 1 News Events
High-impact economic releases — NFP (Non-Farm Payrolls), FOMC rate decisions, CPI inflation reports, GDP. These trigger news restrictions at most futures firms.
Scaling Plan
A structured path to larger account sizes after consistent profitability. In futures it usually means more contracts as your balance grows, or a move to a live account after a set number of payouts.
Activation Fee
A one-time fee paid after passing evaluation to activate the funded account. Apex charges one on its standard accounts and Take Profit Trader on its PRO account. Many futures firms, including Tradeify, Lucid and FundedNext Futures, charge none.