The Forex Funder drawdown rules
When the loss limit rises, what it is measured against, where it stops rising and what a payout does to it, in the firm’s own words.
What makes the loss limit rise · phase 1, funded, phase 2
Our reading
It rises tick by tick, while you trade
“Daily drawdown and total drawdown are dynamic and adjust based on your account’s performance.”help centre · support.theforexfunder.com/en/articles/9823963-how-are-the-daily-and-total-drawdown-calculated · 2026-09-13 · saved copy
Plans: 1-Step Evaluation, 2-Step Evaluation
What the limit is measured against · phase 1, funded
Our reading
Live equity, open trades included
“Max Daily Drawdown (MDD): In this evaluation, the Max Daily Drawdown should not exceed 4%, meaning your equity shouldn't decline by more than 4% from its highest point during any trading day.”help centre · support.theforexfunder.com/en/articles/9808977-how-do-the-max-daily-drawdown-and-max-total-drawdowns-work · 2026-09-13 · saved copy
Plans: 1-Step Evaluation
Total loss allowed · phase 1, funded
Our reading
8%
“Max Total Drawdown (MTD): The Max Total Drawdown threshold is set at 8%, meaning your total drawdown should not exceed 8% of your highest equity point achieved since the start of the evaluation.”help centre · support.theforexfunder.com/en/articles/9808977-how-do-the-max-daily-drawdown-and-max-total-drawdowns-work · 2026-09-13 · saved copy
Plans: 1-Step Evaluation
What the limit is measured against · phase 1, phase 2, funded
Our reading
Live equity, open trades included
“Max Daily Drawdown (MDD): In the first step of this evaluation, the Max Daily Drawdown should not exceed 5%. Your equity should not decrease by more than 5% from its highest point during any trading day.”help centre · support.theforexfunder.com/en/articles/9808977-how-do-the-max-daily-drawdown-and-max-total-drawdowns-work · 2026-09-13 · saved copy
Plans: 2-Step Evaluation
Total loss allowed · phase 1, phase 2, funded
Our reading
12%
“Max Total Drawdown (MTD): The second step focuses on the Max Total Drawdown, which should not exceed 12% of your highest equity point achieved since the start of the evaluation.”help centre · support.theforexfunder.com/en/articles/9808977-how-do-the-max-daily-drawdown-and-max-total-drawdowns-work · 2026-09-13 · saved copy
Plans: 2-Step Evaluation
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This is what the firm publishes, not our opinion. When a firm changes a sentence we see it, and the date moves.