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Prop Trading Drawdown Calculator

See your drawdown floor, daily loss budget, and how many losing trades you can afford — before you place a single trade.

Per trade: $5001% of account
Your drawdown rules
Daily loss limit5% · $2,500
Max overall drawdown10% · $5,000
Drawdown floor$45,000
Risk capacity at account start
Floor ($45,000)Start ($50,000)
Breach10% buffer
Total buffer
$5,000
10% of account
Daily budget
$2,500
5% of account
At 1% risk per trade ($500)
Losing trades before daily limit
5
Losing trades before account breach
10
If you gain 5% today ($2,500)
Your floor rises to$47,500

EOD trailing: your floor only moves up, only at end of day — never intraday, never down.

Figures are based on your starting funded account balance. Daily loss resets at end of each trading day.
Start a $50,000 Challenge

How to use this calculator

01

Choose your account size

Select the funded account size you're trading or planning to trade. Every metric — floor, daily limit, and trade count — scales to your exact account.

02

Select your challenge type

1-step challenges have tighter drawdown rules (4% daily, 7% max). 2-step challenges are more forgiving (5% daily, 10% max). Choose the one that matches your plan.

03

Set your risk per trade

Pick the percentage of your account you risk on each trade. This drives the 'losing trades before breach' figure — the most practical number for daily risk management.

What these numbers mean

Drawdown floor: The absolute minimum your account balance can reach before the account is closed. On a $50K 2-step challenge the floor starts at $45,000 (10% below starting balance). As you profit, the floor rises — but it never falls.
Total buffer: How much you can lose in total before hitting your floor. This equals your max overall drawdown in dollars — $5,000 on a $50K 2-step, $3,500 on a $50K 1-step. Your buffer shrinks as you lose and grows as your floor rises with profits.
Daily budget: The maximum loss allowed in a single trading day. Breaching this closes the account for that day. It resets at the start of each new trading day.
EOD trailing drawdown: Velotrade uses end-of-day trailing drawdown. Your high-water mark — and therefore your floor — only updates when the trading day closes. Intraday profits do not move the floor. This means a trade that spikes up intraday and then reverses does not eat into your buffer.
Tick-by-tick vs EOD: Most competing firms use tick-by-tick trailing drawdown, where every new equity high immediately raises your floor. If BTC spikes 3% intraday and you're in profit, your floor jumps — then a reversal can close you out even if you end the day flat. EOD trailing eliminates this risk entirely.
Losing trades before breach: The number of consecutive max-loss trades (at your selected risk %) before you hit the daily limit or the overall floor. This is the most actionable number: it tells you exactly how much room you have for the trading day.

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Frequently asked questions

Common questions about drawdown rules, daily limits, and how EOD trailing drawdown works.

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