Top prop firms with high drawdown limits
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Best prop firms with highest drawdown limits:
- FundedNext - Beginners-friendly offers (free trial, trade copier software is allowed)
- FTUK - Trading terms suitable for high-risk trading (leverage up to 1:100, fixed drawdown level)
- Goat Funded Trader - A prop trading firm offering simulated capital of up to $400,000 for Forex and CFD trading
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- FTMO - One of the largest prop companies with favorable conditions (profit split up to 90%)
Drawdown is one of the most important limits in prop trading, determining how much an account can lose before a breach. Some prop firms with high drawdown limits allow maximum losses of 12% or more, but a larger percentage does not always mean more trading freedom.
This article compares firms with generous drawdown limits and explains how daily caps, static and trailing models, and calculation methods affect the actual room traders have to manage risk.
Risk warning: Proprietary trading involves substantial financial risk. Using firm capital can lead to gains or losses, and failure to meet targets may result in account closure. Over 85% of prop traders do not achieve long-term profitability. Understand the risks and seek professional guidance.
Best prop firms with the highest drawdown limits
A prop firm with the largest drawdown is not necessarily the one that gives traders the most flexibility. Maximum loss limits need to be considered alongside daily caps, account rules, and the way drawdown is calculated.
The table below compares prop firms with high drawdown limits and other key account conditions that can affect how much trading room those limits provide in practice.
| FundedNext | FTMO | City Traders Imperium | BrightFunded | Hola Prime | Blueberry Funded | |
|---|---|---|---|---|---|---|
|
Max. Leverage |
1:100 | 1:100 | 1:30 | 1:100 | 1:100 | 1:50 |
|
Refundable Fee |
Yes | Yes | Yes | Yes | Yes | No |
|
Funding Up To, $ |
4 000 000 | 2 000 000 | 4 000 000 | 400 000 | 4 000 000 | 2 000 000 |
|
Profit split up to, % |
95 | 90 | 70-100 | 100 | 95 | 90 |
|
Trading period |
Unlimited | Unlimited | Unlimited | Unlimited | Unlimited | Unlimited/7 days for Rapid |
|
One-time-payment |
Yes | Yes | Yes | Yes | Yes | Yes |
|
TU overall score |
9.4 | 8.48 | 6.75 | 5.38 | 5.32 | 6.07 |
|
Open an account |
Go to broker Your capital is at risk. |
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Go to broker |
Go to broker Your capital is at risk. |
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|
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|
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How prop firm drawdown works in practice
The maximum drawdown percentage tells traders how much an account can lose, but the calculation method determines how that limit behaves in practice. Two firms can advertise the same maximum loss while giving traders very different amounts of usable room.
Prop firms generally use several approaches to calculate drawdown:
Static drawdown sets the loss threshold from the initial account balance and does not move it upward after profits.
Trailing drawdown raises the threshold as the account reaches new profit highs, which can reduce the remaining buffer after gains.
Equity-based drawdown includes unrealized profit and loss, so open positions can affect whether the account breaches its limit.
| Drawdown type | How it works | Main advantage | What to watch |
|---|---|---|---|
| Static | Loss threshold remains fixed from the initial balance | Predictable risk buffer that can grow as profits accumulate | The original maximum loss limit does not expand |
| Trailing | Threshold moves upward as the account reaches new highs | Allows the firm to tighten risk as the account grows | Available buffer can shrink after profitable periods |
| Equity-based | Drawdown is measured using account equity, including open P&L | Reflects losses on open positions | Temporary market moves can bring the account closer to a breach |
What makes a high drawdown limit flexible?
A high drawdown prop firm may offer a total loss of 12% or more, but the percentage alone does not determine how much flexibility a trader actually has. Daily loss caps, calculation methods and moving thresholds can all reduce the usable buffer.
For example, a large maximum drawdown may be less useful when:
A strict daily loss limit restricts how much of it can be used in one session;
A trailing threshold moves higher after profitable trades;
Open losses count immediately under an equity-based rule.
This is why traders comparing a prop firm with the highest drawdown should look at the complete rule structure rather than simply choosing the largest percentage. A lower static limit can, in some circumstances, provide more predictable trading room than a higher limit that trails account performance.
Absolute vs trailing drawdown
The headline maximum drawdown can be misleading when comparing prop firms. A 10% fixed limit and a 10% trailing limit may look identical on paper, but they can provide very different amounts of trading room once the account starts generating profits.
How absolute drawdown works
An absolute drawdown prop firm sets the loss threshold in relation to the starting balance and keeps it at that level as the account grows. For example, on a $100,000 account with a 10% absolute drawdown, the loss floor starts at $90,000. If the account later grows to $105,000, the floor remains at $90,000, increasing the trader's effective buffer to $15,000.
This makes the risk boundary relatively easy to plan around. Profitable trades add distance between the current account value and the loss threshold rather than causing the threshold itself to move.
How trailing drawdown changes the buffer
Trailing drawdown behaves differently. The loss threshold moves upward as the account reaches new highs, although the exact calculation can be based on balance, equity, or an end-of-day value depending on the firm.
Using the same $100,000 account with a 10% trailing allowance, a rise to $105,000 could move the drawdown floor from $90,000 to $95,000 if the threshold trails the account by a fixed $10,000. The account has made $5,000, but the distance to the loss floor remains $10,000 rather than expanding to $15,000.
This distinction is important in any prop firm drawdown comparison. Two firms can advertise the same maximum drawdown while giving traders substantially different room to absorb later losses.
| Criterion | Absolute drawdown | Trailing drawdown |
|---|---|---|
| Starting threshold | Set from the initial account balance | Set from the initial account balance |
| Reaction to profits | Remains unchanged as profits accumulate | Moves upward as specified account highs are reached |
| Available buffer after gains | Can increase as the account grows | May remain similar or become more restrictive |
| Predictability | Loss floor is known from the outset | Loss floor can change as performance changes |
| Recovery after losses | Previous profits may provide additional room | Earlier gains may have already moved the threshold higher |
| Main rule to check | Whether any separate daily or equity limits apply | What value causes the threshold to trail and when it stops trailing |
A trailing model is not automatically worse than an absolute one. It simply requires traders to monitor a moving risk boundary rather than a fixed floor. The practical impact also depends on whether the firm trails balance or equity, updates the threshold intraday or at the end of the day, and eventually stops the drawdown at a fixed level.
So when comparing a maximum drawdown prop firm, the question is not simply “How high is the limit?” It is also “What happens to that limit after I make money?”
Why daily drawdown can matter more than the maximum limit
A generous maximum drawdown does not necessarily provide equally generous room during a single session. Many prop firms apply a separate daily loss limit, and breaching it can terminate an account even when the overall drawdown remains intact.
For example, an account with a 12% maximum drawdown and a 4% daily limit allows only a third of the total loss allowance before the daily rule becomes the immediate constraint. This can matter during volatile sessions or when several positions create losses at the same time.
When comparing firms, traders should check:
whether the daily limit is based on balance or equity;
when the calculation resets;
whether open losses count toward the limit;
whether commissions and fees are included.
This also explains why searches for prop firms with the lowest drawdown rules can be misleading. Traders are often looking for less restrictive conditions rather than the smallest loss allowance. Similarly, a highest daily drawdown prop firm may provide more room per session, but that limit still needs to be assessed alongside the overall drawdown rules.
What makes a drawdown model flexible?
Some prop firms modify drawdown conditions as an account progresses. A trailing threshold may stop once it reaches the starting balance, the loss allowance may increase after scaling, or different rules may apply during evaluation and funded stages. These variations are sometimes described as prop firms with extra drawdown, although the term does not refer to one standardized model.
When comparing drawdown structures, traders should look for:
Stable rules over time. Check whether limits change between evaluation, funded, payout, or scaling stages.
Predictable calculations. The method used to calculate balance, equity, and loss thresholds should be clearly defined.
Usable daily limits. A generous maximum drawdown can offer little flexibility if a much tighter daily cap becomes the real constraint.
Room created by profits. It may increase the available buffer under a fixed model, while trailing rules can move the loss threshold higher.
Strategy compatibility. The rules should allow enough room for the trader's typical position size, holding period, and approach to risk.
For a max drawdown prop firm, these factors can matter more than the advertised percentage itself. An absolute or static structure may provide a more predictable buffer, but no single model is automatically best. The best drawdown prop firm is ultimately one whose limits remain clear and workable as the account develops.
Choose usable drawdown, not the largest advertised limit
A high drawdown percentage does not necessarily mean a trader has more room to work with. I would first look at how the limit is calculated and what happens to it after the account becomes profitable. Static or balance-based models can provide a more predictable buffer, while trailing drawdown may move higher with profits and leave less room for a later pullback.
Daily limits are just as important. A generous overall drawdown can quickly become restrictive if the daily cap is much tighter. One useful test is to consider how the rules would affect the account during a normal losing streak rather than focusing only on conditions during profitable periods.
The goal is to choose rules that allow the strategy to operate as intended without encouraging unnecessary risk. Clear calculations, manageable daily limits, and enough room to recover from losses are ultimately more useful than simply choosing the firm with the largest advertised drawdown.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
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Trader testimonials and reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
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Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
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Challenges and evaluation process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
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Profit split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
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Trading conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
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Platform and technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
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Education and support. Quality and availability of training materials, webinars, and one-on-one coaching.
Conclusion
Choosing a prop firm with a high drawdown limit is not just about picking the largest percentage, but understanding the true flexibility and usability of those risk parameters. For example, a 12 percent maximum drawdown with a strict daily cap may be more limiting than a lower fixed drawdown with clear, stable rules. The calculation method—whether static, trailing, or equity-based—can significantly alter a trader’s effective risk buffer. Ultimately, the smartest traders look beyond headline numbers to select firms whose rules align with their strategy, ensuring real room to manage losses and recover, rather than chasing the illusion of freedom.
FAQs
How does the calculation method of drawdown affect trading flexibility in prop firms?
Why should traders pay close attention to daily loss limits in prop firm accounts?
What are the practical differences between absolute and trailing drawdown models for traders?
Which factors should traders consider beyond the drawdown percentage when evaluating the best prop firms with highest drawdown limits?
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Team that worked on the article
Aleksandra Chaikina has been a contributor to Traders Union since 2021. With over 15 years of experience in copywriting and more than 5 years focused on financial content, she specializes in producing detailed guides, analytics, and comparative reviews across various sectors, including cryptocurrencies, Forex, investment strategies, and financial technologies.
Ciaran Ryan is a veteran financial journalist based in South Africa, where he covers cryptocurrency, mining, stock markets, and governance for Moneyweb. He also hosts the weekly Moneyweb Crypto Podcast.
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.
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Proprietary trading (prop trading) is a financial trading strategy where a financial firm or institution uses its own capital to trade in various financial markets, such as stocks, bonds, commodities, or derivatives, with the aim of generating profits for the company itself. Prop traders typically do not trade on behalf of clients but instead trade with the firm's money, taking on the associated risks and rewards.
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