Daily floor = yesterday’s closing balance × (1 − the daily limit).
Equity is checked, so an open loss can breach the account before you close it.
Set your own stop for the day at about half the limit.
The formula
Daily floor = yesterday’s closing balance × (1 − daily limit). The limit is 5% on the 1-Step and 2-Step, 3% on Instant Funded and 3% on Prediction Markets, all measured from the previous end-of-day closed balance.
On a $10,000 1-Step account on its first day, the floor is $9,500: a loss of $500 ends the account. On Instant Funded the same balance may lose $300, so the floor is $9,700.
The daily floor usually bites first. On day one, that 1-Step account may lose $500 in a single day but $1,000 overall, so one bad session can end it long before the maximum loss is anywhere near.
MFC Stocks uses a daily pause instead: 2% of the starting balance. Hit it and positions close and trading stops until the next session, but the account stays open.
How the floor moves day to day
The reference is the closing balance, so the floor follows your results:
| Yesterday’s close (1-Step) | Daily room | Today’s floor |
|---|---|---|
| $10,000 | $500 | $9,500 |
| $10,200 after a good day | $510 | $9,690 |
| $9,800 after a losing day | $490 | $9,310 |
Open profit does not raise the reference until you close the trade. A good day lifts tomorrow’s floor; a bad day lowers it.
Why open losses count
The breach check runs on equity, which includes open positions, commissions and swaps. Balance $10,000 with a trade that is $500 in the red means equity sits on the floor, and the account breaches at that moment, even if you planned to hold and the price later recovers.
That is why the stop loss has to sit inside the daily room, not just inside your idea of the trade. A stop is not a guarantee either: a gap or fast market can fill it beyond the price you set.
The reset
The day resets at 17:00 New York time. It follows New York time, so its time in UTC shifts by an hour when daylight saving changes; the countdown in your Dashboard shows it where available.
A position held over the reset carries its open loss into the new day, so the new daily room can be smaller than you expect. The reset sets a new reference for the day; it does not erase a breach or move the maximum loss floor.
A practical rule
Treat half the daily limit as your own stop for the day. On a $10,000 1-Step that is a personal line at $250. It leaves room for slippage and for a trade that gaps against you, and it keeps one bad session from ending the challenge.
When you reach it, close the platform. Tomorrow starts with a fresh reference and your normal size.
Before the session, write today’s floor in dollars next to your balance. It takes ten seconds, and it means you never have to work it out while a trade is moving against you.
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Risk & rules checklist
Rules as of 17 Oct 2026. Tick each line before your next session.
| Rule | 1-Step Challenge | 2-Step Challenge | Instant Funded | MFC Stocks | Prediction Markets |
|---|---|---|---|---|---|
| Profit target | 10% | 8% + 5% | — | 7% | 10% |
| Daily loss limit | 5% | 5% | 3% | 2% daily pause | 3% |
| Maximum loss | 10% · trailing | 10% · static | 6% · trailing | 5% · trailing | 6% · trailing |
| Consistency | 35% | 35% | 35% | 35% | 35% |
| First payout | after 7 days | after 14 days | after 14 days | after 14 days | after 7 days |
| Then every | 7 days | 14 days | 7 days | 14 days | 7 days |
| Profit split | 80% → 95% | 80% → 95% | 70% → 80% | 70% → 80% | 75% → 90% |
1. What is a daily loss limit and how is it calculated?
- Daily floor = yesterday’s closing balance × (1 − the daily limit).
- Equity is checked, so an open loss can breach the account before you close it.
- Set your own stop for the day at about half the limit.
2. Static vs trailing drawdown: which floor applies to you?
- Static: the floor never moves, so every dollar of profit adds room.
- Trailing: the floor follows your best close, so profit moves it up, not away.
- Once a trailing floor locks at the starting balance, it stops moving.
3. How do you size a trade from your stop and risk?
- Position size = risk in money ÷ (stop distance × value per pip or point).
- Set the stop first, then let the size follow from it.
- Leverage changes margin, not the loss when the stop is hit.
4. How much should you risk per trade on a funded account?
- Losing streaks are normal; the question is whether the account outlives them.
- Divide the maximum loss by your risk per trade to get your streak budget.
- Cut size after a new high on a trailing account, never raise it to win back.
5. What is the consistency rule and how do you stay inside it?
- Best-day share = best profitable day ÷ total profit × 100.
- Later losses shrink total profit, so they can push the share over the cap.
- The fix for one oversized day is more ordinary days, not giving profit back.
6. Can you trade news or hold over the weekend?
- The news window blocks opening new FX and metals positions; closing is always allowed.
- Weekend holding needs its own add-on; MFC Stocks is flat every night anyway.
- Add-ons give a permission; they never widen the loss limits.
myfundedcapital.com/learn/
Questions
Do commissions and swaps count toward the daily limit?
Yes. They reduce equity, and equity is what is tested against the floor, so leave a margin for costs instead of sizing to the exact line.
Does the daily limit use my starting balance?
Not on the 1-Step, 2-Step, Instant Funded or Prediction Markets: they use the previous end-of-day closed balance. MFC Stocks bases its daily pause on the starting balance.
Related lessons
Read more on the blog
Tools and rules
Rules shown here come from the help center and the live rulebook; your program terms apply.
