Drawdown Rules for
Funded Next
Everything you need to know about Funded Next's drawdown rules and how to avoid violating them during your evaluation.
Rules summary
Max Drawdown
10%
Fixed
Daily DD
5%
Per session
Phases
2
Challenge + Verification
Cost
$32 - $549
Depending on account size
How does Funded Next calculate drawdown?
DD Maximum Drawdown: 10% (Fixed)
Funded Next uses a fixed maximum drawdown of 10%. This means your balance can never fall more than 10% from your initial balance. For example, if you start with $100,000, your account cannot drop below $90,000 at any point during the evaluation.
24h Daily Drawdown: 5%
In addition to maximum drawdown, Funded Next imposes a daily drawdown limit of 5%. This means in a single trading day, your equity cannot fall more than 5% from the balance at the start of that day. This limit resets each day at market close.
Common mistakes with Funded Next's rules
These are the most frequent mistakes we see among traders trying to pass Funded Next's evaluation.
Confusing daily drawdown with maximum drawdown
Many traders focus only on the 10% maximum drawdown and forget they also have a 5% daily limit. One bad session can breach the daily limit even though your total drawdown is far from the maximum.
Not considering open trades in the calculation
Funded Next calculates drawdown using your equity (balance + open trades), not just your balance. A large floating loss can breach your limit even though you haven't closed the position. Many traders only monitor balance and are surprised when the prop firm notifies them of a violation.
Trading during news without adjusting risk
High-impact events can cause sharp movements that consume your drawdown margin in seconds. With a 10% limit and a 5% daily maximum, a spike during NFP or rate decisions can end your evaluation before you can react.
How to monitor your drawdown with Funded Next's rules?
Trading Monitor is designed to protect you from drawdown violations during prop firm evaluations like Funded Next.
Alerts before the limit
Set Funded Next's limit (10% max DD, 5% daily) and receive a push alert on your phone when you're approaching. Enough time to close positions or reduce lot size.
Drawdown by strategy
If you use multiple EAs or strategies on your Funded Next account, Trading Monitor shows you each one's drawdown separately using magic numbers. Identify which strategy is pushing you toward the limit.
Sync every 60 seconds
Your MetaTrader data syncs automatically every 60 seconds. No need to check the terminal manually — Trading Monitor does it for you 24/7.
Evaluation period
Create a tracking period with the exact dates of your Funded Next evaluation. See your drawdown progress specifically during that period, not mixed with previous trades.
Protect your Funded Next evaluation
Don't let a drawdown violation ruin your $32 - $549 investment. Trading Monitor alerts you before you cross the limit.
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