Prop firm true drawdown leverage & real risk calculator

Because 1% of the $100,000 headline balance is $1,000—and on a $100,000 account with a $3,000 trailing Maximum Loss Limit (or a 3% daily loss limit), $3,000 is your entire loss allowance. Risking $1,000 per trade is actually risking 33.3% of your true risk capital on every trade, meaning a routine 3-trade losing streak terminates the account.

Size your trades as a percentage of your usable drawdown (typically 8% to 12.5% of your max loss limit, so it takes 8 to 12 consecutive full stops to breach), not the nominal account size. On a $100,000 account with a $3,000 MLL, surviving an 8-loss streak means risking a little under $375 per trade (0.375% of the headline $100,000), since 8 full stops at $375 add up to the whole $3,000.

If a firm locks your 6% trailing drawdown at starting balance ($100,000) and requires keeping a 1% buffer ($1,000) in the account on withdrawal, that buffer comes off what you can lose after the withdrawal. A -1% ($1,000) open-loss limit caps how far all your open trades may be down at once: on Goat Funded Trader's Instant HERO touching it is a hard breach, Blue Guardian Instant's Guardian Shield cuts the split, and AquaFunded now applies its -1% per trade, with strikes. Under a $1,000 limit, a trade risking $1,000 reaches it on its own stop, and two trades open at $500 each reach it together—so $200 to $250 per trade (0.20%–0.25% nominal) leaves room for several open positions.