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Prop Trading Risk Management

Drawdown limits, position sizing and the habits that keep a funded account alive.

Why risk comes first

Most prop firm accounts are not lost to bad strategies. They are lost to a single oversized trade or a bad day that breaks the daily loss limit. Managing risk is the skill that keeps you funded long enough for your edge to pay.

The two limits that matter

Every account has a daily loss limit and a maximum loss limit. Knowing exactly how each is measured, and sizing every trade so one loss can never break them, is the foundation. Start with daily drawdown vs maximum drawdown, then work through the 10 risk rules every funded trader should follow.

Limits by account

Loss limits differ by account type. See them side by side on the compare accounts page.

Ready to trade a funded account?

Instant, One Step or Two Step. Simulated accounts from $5,000 to $200,000, no minimum trading days and a reward split of up to 100%.