How much can I risk per trade without breaching my prop firm's max drawdown limit?
Enter Your Account Rules
Your Result
Fill in the fields on the left and click Calculate to see your remaining drawdown cushion and a suggested max dollar risk per trade.
How this is calculated
For a static max drawdown rule, the drawdown floor is calculated once from your starting balance and does not move, even as your balance grows above it.
For a trailing max drawdown rule, the floor is calculated from the highest balance your account has reached, and rises each time you hit a new equity high.
Your remaining drawdown cushion equals your current balance minus the drawdown floor. This is the total dollar amount left to lose before the rule is breached.
The suggested max risk per trade divides your remaining cushion by the number of consecutive losing trades you want to be able to survive, so a single losing streak can't end the account by itself.
Every firm defines "trailing" and "static" slightly differently, including whether the floor is based on intraday equity or end-of-day balance. Confirm the exact rule in your specific firm's agreement before relying on this number.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers and assumptions you enter. It is not financial advice, is not affiliated with any prop trading firm, and does not guarantee you will avoid a drawdown breach or pass any evaluation. Prop firm rules vary widely and change over time — always verify the exact drawdown definition with your specific firm before trading. Trading involves risk of loss. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, prop firm, or data provider. You could lose some or all of the capital you trade with.
Protect the Account, Not Just the Trade
More Trading Tools
Related calculators for sizing risk against an account's hard limits.