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.
Static: the 2-Step
On the 2-Step the maximum loss is 10% of the starting balance and it never moves. A $10,000 account always has its floor at $9,000. If the account grows to $10,500, the floor is still $9,000, and the room above it has grown by $500.
Every dollar of profit adds to the distance between you and the floor. The daily limit is still recalculated each day, so on a bad day it can be the tighter of the two.
Trailing: the 1-Step
On the 1-Step the floor starts 10% below the starting balance, at $9,000 on $10,000, and follows your highest closed balance. Close at $10,600 and the floor moves up by the same $600.
It stops moving once your closed balance reaches $11,000 (+10%). From then on it stays at the starting balance, $10,000. Until that point, a winning run does not buy you extra room; it moves the floor up behind you. Open profit does not move it, because only closed balance counts.
Trailing: Instant Funded and MFC Stocks
Instant Funded works the same way with a tighter floor. On $10,000 it starts at $9,400, rises with your highest closed balance, and locks at $10,000 once the closed balance reaches $10,600.
MFC Stocks has a 5% floor that trails the highest closed balance and locks at the starting balance: on $10,000 it starts at $9,500 and stays at $10,000 from $10,500.
Trailing equity: Prediction Markets
Prediction Markets uses a 6% floor that trails the equity high-water mark, with no lock. Two things follow. Open profit counts: if a position runs up, the floor rises with it, even before you close. And the floor keeps rising past the starting balance for as long as equity makes new highs.
On $10,000 it starts at $9,400. A position that lifts equity to a new high and then gives it back can breach the account from that higher level.
How to trade a moving floor
| Program ($10,000) | Model | Floor starts at | Stops moving |
|---|---|---|---|
| 2-Step | Static | $9,000 | Never moves |
| 1-Step | Trailing, closed balance | $9,000 | At $10,000, from a $11,000 close |
| Instant Funded | Trailing, closed balance | $9,400 | At $10,000, from a $10,600 close |
| MFC Stocks | Trailing, closed balance | $9,500 | At $10,000, from a $10,500 close |
| Prediction Markets | Trailing, equity | $9,400 | Never locks |
On a trailing account, the cushion after a strong week is the same 10% you started with, measured from a higher point. Three habits help:
- Keep risk per trade flat after a new high; do not size up because the balance looks bigger.
- Track the floor in dollars every morning, not just the percentage.
- Treat the lock level as a milestone: until you reach it, yesterday’s profit is not protection.
On a static account the logic flips: early profit is a real buffer, so the first weeks are where careful size pays off most.
Quiz
Check yourself
0 / 4
Lesson complete
Nice work. … of 6 lessons in Risk & rules done.
MyFundedCapital School
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
Does the floor move down after a losing day?
No. A trailing floor only moves up with a new high and never falls back. A static floor does not move at all.
Which floor matters more, daily or maximum?
Both apply at once, and the tighter one is the one that can end the account first. Early in an account that is often the daily floor.
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.
