Prop trading

FFUNDED Trading Rules Explained (With Examples)

By FFUNDED Editorial Team · Jul 23, 2026 · 8 min read

FFUNDED publishes every trading rule up front. You reach a profit target where one applies, stay inside a daily drawdown limit and a maximum drawdown limit at all times, complete the minimum profitable days your plan requires, and trade in a way that reflects genuine, repeatable skill. Break a hard limit and the stage ends; break a softer rule and the system records it. Every number that varies by plan lives in your plan terms.

This page is the plain-English explainer. The authoritative wording is the Trading Rules and your plan-specific terms; where the two ever differ, the terms control.

The two limits that matter most

Drawdown protection is the core risk control on every account, and it comes in two forms.

Daily drawdown caps the loss allowed within a single trading day. It is measured from the higher of the day's starting balance or starting equity, and it resets each trading day. Exceeding it is a hard breach that ends the account stage.

Maximum drawdown caps the total loss allowed over the life of the account. Depending on the plan it is measured from the initial balance, or it trails the account's highest recorded equity. Exceeding it is a hard breach that ends the account.

Both limits are monitored on floating (open) equity as well as closed balance. An open position that pushes your equity through a limit is a breach on its own; you do not have to close the trade first.

Worked example (illustrative, your plan sets the exact figure)

On a $100,000 account with a 5% daily limit: if the day starts with balance $103,000 and equity $102,000, the limit is measured from the higher figure, $103,000. Your floor for the day is $103,000 minus $5,000, which is $98,000 in equity. If your equity touches $98,000 at any point, open trades included, that is a daily breach and the stage ends.

Hard breaches vs soft breaches

A hard breach ends the affected stage immediately. Hard breaches include exceeding the daily limit, exceeding the maximum limit, and any trading the Company reasonably determines was designed to exploit simulated pricing, latency or feed errors. Hard breaches are final, and simulated profits on a hard-breached account are void with no entitlement to a payout.

A soft breach does not end the account on its own. Instead it is recorded as a strike. Soft breaches include exceeding permitted notional exposure, holding positions against your account's weekend or overnight conditions where those apply, excessive floating drawdown behaviour, and martingale-style position scaling.

The five-strike system

Accounts run on a five-strike system. Each soft breach adds a strike, and reaching the ceiling closes the account. Repeated soft breaches can also reduce an eligible payout under the Payout Policy. Strikes can be appealed through the Complaints Policy.

Separately, some rules issue a formal warning rather than a strike: High-Frequency Trading, Maximum Floating Loss per Trade, Maximum Total Exposure, Overnight Holding and Weekend Holding. Each of these allows a maximum of two warnings, tracked per rule.

First warning (1 of 2): trading is suspended immediately and cannot resume until a Challenge Reset is completed.
Second warning (2 of 2): the account is breached and trading is permanently disabled. No reset is available.

Resets: two different tools

A Challenge Reset is free, available on Challenge accounts only, and resets your progress and nothing else. It restarts the challenge from day one: open positions close, the balance returns to its starting figure, profit and loss returns to zero, and all progress resets. It does not remove warnings, rule violations or compliance history, and existing warning counts carry over.

A Funded Reset is a paid option on funded accounts only. It is available while the account has not been permanently breached, has no open positions, the fee is paid, and current maximum drawdown usage is still below 10%. Unlike a Challenge Reset, it also clears warnings, strikes and user-facing rule violations. For the full comparison see Challenge Reset vs Funded Reset.

The Trade Consistency Rule

To reward repeatable skill rather than a single lucky day, each account is measured against its own rolling average using an adaptive band. A single trade, or a cluster of trades on one day, that lands far above your own average may be flagged, and the outsized portion can be discounted when performance is measured. Ordinary variation is not penalised; the rule targets results that depend on one disproportionate event.

Minimum trading requirements

Where a plan sets a minimum number of profitable trading days, a profitable day is any New York trading day closed with positive net realised profit. There is no percentage threshold on it. Falling short affects payout eligibility only; it does not close the account. Opening token positions just to register a day does not count and may be treated as a soft breach.

Prohibited trading behaviours

The following are prohibited on all accounts:

Trading that relies on latency, feed or pricing errors, including latency and reverse arbitrage.
Coordinated trading, group hedging or opposite-direction hedging across accounts to guarantee an outcome.
Copy trading or signal following that mirrors positions across accounts you do not personally trade.
Automated or algorithmic trading, including expert advisors and bots, except where a plan expressly permits it. See Can I use an EA or bot on FFUNDED?
High-frequency patterns intended to exploit the simulated environment.
Grid and martingale strategies that scale exposure into losses beyond permitted limits.
Loss-recovery over-sizing, meaning materially increasing size after a realised loss to recover it.
Excessive concentration in a single direction or instrument beyond permitted exposure limits.

Common mistakes

Measuring the daily limit from your current balance instead of the day's starting figure.
Forgetting that floating (open) losses count toward both limits.
Assuming a Challenge Reset wipes warnings. It does not; only a Funded Reset clears them.
Registering a "profitable day" with a token trade. It will not qualify.

Frequently asked questions

What happens if I exceed the daily drawdown limit on FFUNDED?

Exceeding the daily drawdown limit is a hard breach. It immediately ends that account stage, and any simulated profit on the account becomes void with no entitlement to a payout. The limit is measured from the higher of the day's starting balance or starting equity, and floating losses count.

Does a Challenge Reset remove my warnings?

No. A Challenge Reset resets only your progress and restarts the challenge from day one. Existing warnings, rule violations and compliance history carry over. Only a paid Funded Reset, available on funded accounts, clears warnings and strikes.

Are FFUNDED accounts real or simulated?

All FFUNDED accounts run on simulated capital in a demo environment, so you never risk your own money in the live market. Performance is measured against real market prices, and payouts you earn on a funded account are paid to you in real money.

Where are the exact drawdown percentages for my plan?

The exact numeric thresholds, including profit targets and drawdown limits, are defined in the terms for the specific plan you buy: the CFDs Challenge Terms, Futures Challenge Terms or Instant Account Terms. These differ by plan, which is why this guide uses illustrative figures.