What's the difference between daily and max drawdown?

Daily drawdown is a floor set below your equity at the start of each calendar day and resets at 00:00 UTC. Max overall drawdown is a floor that trails behind your highest closed-equity peak and never resets — once it moves up, it stays up.

Is drawdown measured on balance or equity?

On MixFunded, drawdown is measured on equity — balance plus or minus any open floating profit or loss. That means an open losing position can trigger a breach in real time, even before you close the trade.

What happens if I breach the drawdown?

Touching either the daily or max drawdown floor ends the account. There's no grace period once the equity threshold is crossed, which is why sizing positions against the remaining drawdown runway matters more than the profit target itself.

What are MixFunded's drawdown limits?

Standard 1-Step and 2-Step evaluations run 4% daily / 8% max. Pay After Passing (PAPP) runs a tighter 3% daily / 8% max. Both are measured on equity across every program, evaluation and funded alike.

Does drawdown loosen if I make more profit?

No. The daily drawdown resets to a fresh floor each day, but the max overall drawdown only trails upward with your peak equity — it never expands beyond the original percentage, and it never gives back room once it has tightened.

FAQ · Risk rules

What is a prop firm drawdown?

A prop firm drawdown is the maximum amount your account's equity is allowed to fall from a reference point before the account is breached and closed. Most firms enforce two limits: a daily drawdown that resets each day, and a max overall drawdown that trails your highest equity peak. On MixFunded, daily and max drawdown are measured on equity — including open floating P&L — not on closed balance.

Why drawdown exists at all.

A prop firm is putting its own capital behind a trader it has never met. Drawdown is the mechanism that limits how much of that capital any single trader can lose before the relationship ends. It replaces trust with a hard, mechanical floor.

Daily drawdown, in practice.

Say your account starts the day at $50,000 equity and the daily drawdown is 4%. Your floor for the day is $48,000. If equity touches that number at any point — including from an open losing trade — the account breaches immediately. At 00:00 UTC the next day, the floor recalculates from wherever your equity closed.

Max overall drawdown, in practice.

Max drawdown trails your highest closed-equity peak. If that same $50,000 account grows to $54,000 and the max drawdown is 8% ($4,000 at inception), the floor doesn't stay at $46,000 forever — it trails up as your equity peak rises, permanently locking in progress but never giving back room.

MixFunded's numbers.

Standard evaluations (1-Step and 2-Step) run 4% daily / 8% max. Pay After Passing runs a tighter 3% daily / 8% max on its $50,000 program with a $150 activation fee charged only after you pass. Full numbers by program live on /programs and the complete rulebook is on /rules. For terminology, see /glossary.

Quick facts.

Measured on: Equity (includes open P&L)
Standard programs (1-Step/2-Step): 4% daily / 8% max
Pay After Passing (PAPP): 3% daily / 8% max
Daily reset: 00:00 UTC
Max drawdown behaviour: Trails highest equity peak, never loosens

Related to drawdown.

Keep reading.

Trading rules

Full drawdown, target, and payout rulebook.

Glossary

Daily vs trailing drawdown, equity vs balance.

All programs

Drawdown limits by program, side by side.

All FAQs

More direct answers on prop firm mechanics.