Daily drawdown on Falcon Funded

The daily drawdown limit is the maximum amount you are allowed to lose in a single trading day. It’s recalculated daily based on your account balance at the start of the trading day. The clock resets every 24 hours at 00:00 GMT+3, giving you a fresh start each day.

But if your balance drops below the limit during the day, that’s game over—you will fail the challenge. Don’t panic, though. Once you understand how it works and how to manage it, the daily drawdown limit becomes more of an ally than an obstacle.

Daily drawdown limits for Falcon Funded challenges

Let’s get straight to the numbers. Here’s how the limits are applied to the Regular and Swing challenges:

• Regular Two-Phase Challenge:
  • Phase 1: 4%
  • Phase 2: 4%
  • Funded Account: 4%

• Swing Two-Phase Challenge:
  • Phase 1: 4%
  • Phase 2: 4%
  • Funded Account: 4%

• Knockout One-Phase Challenge:
  • Phase 1: 3%
  • Funded Account: 3%

How is the daily drawdown calculated?

Example: You are trading with a $200,000 account, and your daily drawdown limit is 4%. Your maximum loss is set at $8,000 for the day.

Rule violation: If your balance falls below $192,000 at any point during the trading day, you will fail the challenge.

Now, let’s say you finish the day with some profit. If your balance increases to $210,000 by the end of the day, your new daily drawdown limit will be $8,400 (4% of $210,000). Your next trading day’s drawdown is recalculated from this updated balance.

Why is the daily drawdown limit important?

The daily drawdown limit is there to protect your account and Falcon Funded’s capital while helping you develop disciplined trading habits.

Here’s why it matters:

• It keeps you disciplined: The rule prevents reckless trading on bad days, encouraging you to stick to your plan.
• It protects your progress: By capping losses, you live to trade another day—even after a losing streak.
• It builds professional habits: Learning to manage drawdowns prepares you for real-world trading, where risk management is everything.

How to track your drawdown

Keeping track of your drawdown is easy with Falcon Funded’s dashboard. Everything is calculated for you in real time.

You can check your daily drawdowns on the main page of your Dashboard.

What happens if you break the rule?

If your balance dips below the daily drawdown limit, the challenge ends immediately. It’s a tough pill to swallow, but it’s designed to teach you the importance of risk management.