Updated 2026-03-08
Funded Trading Plus Maximum Daily Loss Rule Explained
Funded Trading Plus
Quick Answer
Funded Trading Plus's Maximum Daily Loss rule limits daily losses to 5% of account balance.
The rule is calculated based on your account balance or equity at the start of each trading day. It includes both realized and unrealized losses from open positions. Breaching this limit results in immediate account termination and failure of the challenge or funded account.
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 Unrealized Losses
Traders often focus only on closed trades while holding large losing positions. If you have a $50,000 account and hold positions with $2,000 in unrealized losses plus $1,500 in realized losses, you've already hit $3,500 total losses and are dangerously close to the $2,500 daily limit.
Weekend Gap Risk
Holding positions over weekends exposes you to gap risk that can breach the daily loss limit instantly when markets open Monday. On a $100,000 account, a 6% gap down would immediately exceed the $5,000 daily loss limit and terminate your account.
Misunderstanding Daily Reset Timing
The daily loss limit resets at market open (typically 5 PM EST Sunday-Thursday), not at midnight in your timezone. Trading during rollover periods without knowing your exact reset time can lead to miscalculating your available daily loss buffer.
Compounding Loss Recovery Attempts
After losing 3-4% in a day, traders often increase position sizes to recover losses quickly. On a $25,000 account, after losing $1,000, attempting to recover with oversized positions frequently pushes losses past the $1,250 daily limit instead of recovering the account.
Protection Strategies
Set Personal Daily Loss Limit at 4%
Create your own stop-loss at 4% instead of the firm's 5% limit to provide a safety buffer. On a $100,000 account, stop trading at $4,000 in daily losses rather than risking the $5,000 firm limit. This buffer protects against slippage and calculation errors.
Use 1% Risk Per Trade Maximum
Limit individual trade risk to 1% of account balance to prevent single trades from causing major damage. With 1% risk per trade, you'd need five consecutive losses to approach the daily limit, giving you multiple opportunities to reassess your trading approach.
Set Real-Time Loss Alerts at 3%
Configure your trading platform or use third-party tools to alert you when daily losses reach 3% of your starting balance. This early warning system gives you time to close positions and reassess before approaching the critical 5% threshold.
Avoid Trading During High-Impact News Days
Skip trading on days with major economic announcements like FOMC meetings or NFP releases when volatility can cause rapid, unpredictable losses. While Funded Trading Plus allows news trading, the increased volatility significantly raises the risk of hitting daily loss limits through sudden market movements.
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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 Funded Trading Plus's official website before purchasing a challenge. Updated 2026-03-08.