When trading with Falcon Funded, the overall drawdown limit is a key rule you’ll need to keep in mind. Think of it as a safety mechanism that ensures you don’t lose too much of your account’s value over the course of the challenge. This rule sets the maximum amount your equity can drop from your initial balance—and here’s the catch: it stays fixed throughout the entire challenge, from start to finish. If your equity dips below this limit, your challenge automatically ends.
Let’s explore how the overall drawdown works, why it matters, and how you can track and manage it effectively.
Overall drawdown limits by challenge type
For Falcon Funded, the overall drawdown limit is set at 11% for both the Regular and Swing challenges. Here’s how it applies across all phases:
No matter which phase you’re in, the rule remains consistent, so you always know your boundaries.
How is the overall drawdown calculated?
In simple terms, your overall drawdown is a percentage of your initial balance and remains constant throughout the challenge.
For example, if your starting account is $100,000, this limit will not adjust as your account grows.
With an 11% drawdown rule, your maximum loss is $11,000.
If your equity falls below $89,000 at any point, you’ve breached the rule and failed the challenge.
This fixed limit means you need to manage your trades carefully to ensure you don’t come close to that threshold. Unlike the daily drawdown, which resets every 24 hours, the overall drawdown is static—it’s always based on your starting balance.
How to track your overall drawdown
Falcon Funded makes it simple to stay on top of your drawdown limits. Everything is automatically calculated and displayed in your dashboard, so you always know where you stand. Here’s how to check it:
Log in to your dashboard and go to the Challenge Accounts section.
Select the challenge you want to monitor.
Scroll down to the “Current Results” section.
You will find your Max Daily Drawdown and Max Permitted Losses (overall drawdown) listed there.
What are the penalties for exceeding the limit?
If your account equity falls below the 11% drawdown mark, the challenge ends right away. You won’t be able to trade further, and any unused funds in your account are forfeited. It’s a strict rule but one that promotes responsible risk-taking.
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