Largest
Drawdown
Everyone loves drawdown flexibility! Whether you're a beginner looking for a forgiving trading account or an experienced trader fine-tuning your risk management rules, choosing a prop trading firm with a large maximum drawdown can make all the difference.
These firms provide traders with the cushion they need to navigate market fluctuations while refining their strategies. Choosing a firm with a strong drawdown policy can help you stay in the game longer and maximize your potential. Explore the options below and find the best fit for your trading journey!
Why a Large Drawdown Matters
A higher total drawdown allows you to withstand market fluctuations without hitting restrictive drawdown limits too soon. It gives you more room to execute your trading strategy, meet your profit target, and ultimately, scale your funded account effectively.
Top Proprietary Trading Firms Offering High Drawdown
The firms listed provide some of the most generous daily drawdown limits and maximum drawdown policies in the industry. If you're looking for a prop firm with the largest drawdown, consider how these firms structure their trading rules, daily loss limits, and profit-sharing models.
Choosing the Right Prop Firm
When selecting a prop trading firm, consider:
✅ Account Size: Larger funded accounts often come with higher drawdown limits.
✅ Daily Loss Limit: Ensures you can manage risk within the firm’s trading rules.
✅ Trading Period & Days: Some firms reset drawdowns based on the trading day or trading period.
By choosing a prop firm with the largest drawdown, you’ll gain more flexibility to refine your trading strategy and reach your profit target without unnecessary restrictions.
What is the Absolute Drawdown of a Prop Firm?
Absolute drawdown measures how much your trading account has dropped below your initial balance. It helps prop trading firms manage risk and prevent excessive losses.
For example, if you start with a funded account of $100,000 and your balance drops to $90,000, your absolute drawdown is $10,000 (or 10%). This is different from a maximum drawdown, which considers the highest balance your account reaches before a decline.
Most prop trading firms set drawdown limits to protect their capital. Traders must stay within these trading rules to maintain their funded accounts and continue trading.