Updated 2026-03-08
AquaFunded Maximum Daily Loss Rule Explained
AquaFunded
Quick Answer
AquaFunded's Maximum Daily Loss limit is 5% of your account balance per trading day.
The rule is calculated based on your equity including all unrealized/floating positions, not just closed trades. If your account equity drops 5% or more in a single trading day, you'll immediately breach the rule and your account will be terminated.
Key Rule Details
Limit
5%
Dollar Value ($100,000)
$5,000
Includes
Open + Closed P&L
Resets
Daily
Breach
Account terminated
Calculation Example
Common Mistakes
Ignoring Floating Losses
Traders often think only closed positions count toward the daily loss limit. AquaFunded includes unrealized P&L in the calculation. On a $100,000 account, if you have $3,000 in closed losses and $2,500 in floating losses, you've already breached the $5,000 daily limit even without closing the losing position.
Weekend Gap Violations
Markets opening with significant gaps on Monday can instantly breach the daily loss rule before you can react. If you hold positions over the weekend on a $50,000 account and the market gaps down $2,500 or more at open, you'll breach the rule immediately upon market open.
Multiple Small Position Accumulation
Opening several small losing positions throughout the day without monitoring total exposure. On a $25,000 account, five positions each down $250 equals $1,250 total loss, reaching the $1,250 daily limit faster than expected.
News Event Overexposure
Taking large positions during high-impact news releases without considering volatility. Even though AquaFunded allows news trading, a $200,000 account can breach the $10,000 daily limit in seconds during volatile news events if position sizing isn't properly managed.
Protection Strategies
Set Personal Daily Loss Limit at 3%
Always stop trading when you reach 3% daily loss, giving yourself a 2% buffer before hitting AquaFunded's 5% limit. On a $100,000 account, stop at $3,000 loss instead of waiting until the $5,000 limit. This accounts for slippage and prevents accidental breaches.
Risk Maximum 1% Per Trade
Never risk more than 1% of your account on a single position, allowing for up to 3 losing trades before approaching the daily limit. On a $50,000 account, limit each trade risk to $500. This prevents any single trade from causing a catastrophic loss toward the $2,500 daily limit.
Enable Real-Time Equity Monitoring Alerts
Set up alerts when your daily loss reaches 2%, 3%, and 4% to track your proximity to the 5% limit. Use platform tools or third-party apps that calculate floating P&L in real-time. This prevents surprise breaches from accumulating unrealized losses.
Avoid Holding Positions Through Market Gaps
Close all positions before market close on Fridays and before major news events to prevent gap-related breaches. Weekend gaps or earnings surprises can instantly push you beyond the 5% daily limit when markets reopen, especially on smaller account sizes where the dollar threshold is lower.
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Frequently Asked Questions
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on AquaFunded's official website before purchasing a challenge. Updated 2026-03-08.