// max drawdown
Your maximum drawdown is the floor: the total loss from your starting point that means stop. Prop firms set it at 10%. On your own account, it’s the line between a drawdown you recover from and one you don’t.
See how close you are to your floor Set your own max drawdown · free Open the calculatorThey’re two different floors. The daily loss limit caps one day. The maximum drawdown caps the whole account: the total you’re willing to be down from your starting balance before you stop and reset. You can have a good daily discipline and still bleed past your max drawdown over weeks; you need both.
Prop firms commonly use ~10% as the overall floor; what’s right for your own account depends on you, and this isn’t advice. The harder part isn’t the number, it’s honouring it. A maximum drawdown rule only protects you if hitting it actually means stopping, rather than ‘adding a bit more to make it back’.
EXIT CODE’s own-capital mode tracks your equity against the floor you set and shows your remaining room before you’d cross it.
What is a maximum drawdown rule?
It's the total loss from your starting balance you'll allow before you stop trading and reset. Prop firms enforce one (commonly 10%); on your own account you set and hold it yourself.
What's the difference between daily loss and max drawdown?
The daily loss limit caps a single day; the maximum drawdown caps the whole account from its starting point. Most disciplined traders set both.
How do I track my max drawdown?
EXIT CODE's own-capital mode lets you set your max drawdown and shows your live distance to the floor, in dollars and trades.