What Is the My Funded Futures Daily Loss Limit?

The MFFU Daily Loss Limit is a rule that caps how much you can lose in a single trading day. If you hit this limit, all trades are closed, and trading is paused until the next session starts at 6:00 PM EST. Unlike trailing drawdown, which tracks total losses over time, this limit resets daily and focuses solely on that day’s performance.

Key points about the Daily Loss Limit:

• Fixed Dollar Amounts: Limits are set as fixed dollar values tied to account size, not percentages. For example, a $50,000 Starter account has a $1,200 daily limit.
• Applies to Closed and Unrealized Losses: Losses from closed trades and unrealized positions count toward the limit.
• Account-Specific Rules: Some accounts, like Flex and Pro, don’t have daily loss limits during evaluation.

Understanding and respecting this limit helps traders manage risk and avoid steep losses. Implementing robust futures trading risk management strategies is essential to staying within these boundaries.

How MFFU Calculates the Daily Loss Limit

MFFU sets your Daily Loss Limit using fixed dollar amounts instead of percentages. This approach ensures the limit remains the same throughout your trading journey, no matter how much your account balance grows or how successful your trades are. For example, if you have a Starter 50K account, your daily cap is a fixed $1,200. Even if your account balance increases significantly, that $1,200 limit doesn’t change. This amount isn’t random - it’s specifically aligned with the maximum allowance for trading 3 E-Mini contracts on that account type. The goal? To help you avoid over-leveraging and protect your account from rapid depletion. Let’s break down how these fixed amounts are calculated.

The Calculation Formula Explained

MFFU uses preset dollar amounts based on your account type. For instance, if you start with an Evaluation-to-Live account at $2,000, your daily loss limit is set at $500. These limits don’t fluctuate - they stay fixed from the moment you begin trading until you either breach a rule or upgrade your account.

The limit applies to all activity during the trading day, which runs from 6:00 PM to 4:10 PM EST. This includes both closed trades and any unrealized losses from open positions. For example, if you’ve already lost $800 on closed trades and have an open position showing a $400 unrealized loss, you’ve hit the $1,200 cap for a Starter 50K account.

What Affects Your Daily Loss Limit

Two main factors determine your daily limit: your account plan and your starting account size. Accounts like Starter and Expert have fixed daily limits, while others - such as Core, Scale, Pro, and Starter Plus - often don’t have a daily loss limit at all.

Another key element is contract limits. For example, trading 3 E-Mini contracts on a $1,200 limit means a 3-point adverse move (with each point costing $50 per contract) could quickly eat up nearly 40% of your daily buffer.

"MFFU establishes these limits not to restrict trading freedom but to maintain operational stability across their entire ecosystem of funded traders." - MyFundedFutures

"MFFU establishes these limits not to restrict trading freedom but to maintain operational stability across their entire ecosystem of funded traders." - MyFundedFutures

Next, we’ll explore how these limits differ depending on the account type.

Daily Loss Limits by Account Type

MFFU Daily Loss Limits by Account Type Comparison Chart

Daily loss limits depend on the type of account plan, not just the account size. For the newer evaluation plans - Flex, Pro, and Rapid - there are no daily loss limits during either the evaluation phase or the sim-funded stage. This policy provides traders with more freedom to refine their strategies without restrictions.

For Legacy Starter accounts, a daily loss limit is enforced once the account transitions from sim-funded to a Live Funded account. These limits are tied to the account size and remain fixed after being set. For instance, a Starter account with $50,000 has a daily loss limit of $1,200, while accounts with larger balances have proportionately higher account sizes.

Account Types and Their Loss Limits

Here’s a breakdown of daily loss limits for different MFFU account plans:

Account Plan	Account Size	Daily Loss Limit
Starter	$50,000	$1,200
Starter	$100,000	$2,400
Starter	$150,000	$3,600
Flex	All sizes	None
Pro	All sizes	None
Rapid	All sizes	None

Daily Loss Limit vs. Maximum Drawdown: What's the Difference?

The Daily Loss Limit (DLL) and Maximum Drawdown (MDD) are two distinct safeguards designed to protect your MFFU account. The DLL acts like a financial "circuit breaker", limiting how much you can lose in a single trading day. On the other hand, the MDD is a broader safety measure, ensuring your total losses never exceed a set percentage of your account's peak value. Knowing how these limits work is crucial for keeping your account in good standing.

One major distinction lies in how they reset. The Daily Loss Limit resets every day at market close, meaning you can start fresh the next session. The Maximum Drawdown, however, is cumulative - it tracks your account's performance over its entire duration and doesn’t reset. This means you could hit your DLL multiple times without losing your account, as long as your total losses stay below the MDD threshold. Crossing the DLL stops your trading for the day but leaves your account active for the next session. Breaching the MDD, however, results in the termination of your account's evaluation or funded status, requiring a reset fee - typically around $97.

"Daily Loss Limits track intraday performance from market open to close. They function as financial circuit breakers, automatically halting trading activity when losses reach predetermined thresholds." - MyFundedFutures

"Daily Loss Limits track intraday performance from market open to close. They function as financial circuit breakers, automatically halting trading activity when losses reach predetermined thresholds." - MyFundedFutures

For example, if you’re trading on a Starter 50K account, the DLL is set at $1,200, while the MDD is $2,500. By understanding these limits, you can use them as performance benchmarks to manage risk and pass a prop firm challenge more effectively. Up next, dive into the consequences of exceeding these thresholds and strategies to avoid them.

What Happens If You Breach the Daily Loss Limit?

If you go over your Daily Loss Limit (DLL), the MyFundedFutures system steps in and halts all trading activity for the rest of that trading day. This means you won’t be able to open any new positions until trading resumes at 6:00 PM EST. This enforced pause acts as a cooling-off period, giving you time to evaluate your strategy and workspace risk controls.

It’s important to note that a DLL breach doesn’t mean your account is terminated. While trading is paused for the day, your account remains active. Open positions will stay open unless they also hit your Maximum Drawdown. Once the new trading day begins, your account will automatically reset, allowing you to continue trading without any additional steps. Plus, you won’t face the $97 reset fee unless you exceed the Maximum Loss Limit, which helps protect your account’s overall standing.

However, frequent breaches of the DLL could lead to a formal account review by the risk management team. To avoid this, take the opportunity to analyze your trades after a breach and steer clear of impulsive actions like revenge trading. Staying disciplined is key to maintaining long-term success.

Real Trading Examples of the Daily Loss Limit

Here are two scenarios that show how the Daily Loss Limit works in trading, using real MFFU account settings. These examples highlight how losses can add up quickly and trigger the system's safeguards.

Example 1: The Morning Momentum Trade Gone Wrong

Imagine a $50,000 simulated account with a $2,500 Daily Loss Limit (5% of the starting balance). The trading day begins at 6:00 PM EST. By 9:30 AM EST, the trader takes a long position on ES futures, anticipating a bullish move. Unfortunately, the market moves in the opposite direction. By 10:15 AM EST, the trader has $1,800 in realized losses, leaving only $700 before hitting the $2,500 limit.

Later, at 11:00 AM EST, the trader enters another trade with a $500 risk. This trade immediately turns against them, showing an unrealized loss of $750. At this point, the account's total loss is $1,800 (realized) + $750 (unrealized) = $2,550. Since this exceeds the $2,500 limit, the system automatically locks the account, halting trading until 6:00 PM EST.

This example shows how a couple of poorly timed trades can quickly lead to a breach of the Daily Loss Limit.

Example 2: Death by a Thousand Cuts

Now consider a $25,000 account with a $1,250 Daily Loss Limit. The trader makes 15 small trades throughout the day, with mixed results. By 2:00 PM EST, they’ve accumulated $980 in realized losses, plus $45 in commissions and fees. This leaves just $225 before hitting the limit. If the trader makes one more scalp trade with a $300 stop loss, the account would immediately breach the limit, triggering the circuit breaker and locking trading for the rest of the day.

This scenario underscores the importance of tracking not just trade losses but also additional costs like fees and commissions to avoid exceeding the limit.

These examples emphasize the need for careful risk management and close monitoring of cumulative losses to stay within your Daily Loss Limit.

How to Avoid Breaching the Daily Loss Limit

Staying within your Daily Loss Limit (DLL) is all about smart risk management. A good starting point is to cap your risk per trade at 10–15% of your DLL. For example, if you’re trading on a $50,000 Starter account with a $1,200 DLL, your maximum risk per trade should range between $120 and $180.

"The daily loss limit is more than a rule - it's a tool for building consistency and professionalism. By mastering it, you're not just following firm requirements; you're building the mindset of a disciplined, long-term trader." – MyFundedFutures

"The daily loss limit is more than a rule - it's a tool for building consistency and professionalism. By mastering it, you're not just following firm requirements; you're building the mindset of a disciplined, long-term trader." – MyFundedFutures

To add an extra layer of protection, consider setting a personal "soft" limit that’s 20–30% below the official DLL. For instance, if your firm’s limit is $1,200, you could stop trading once losses hit $900. This buffer accounts for slippage or unexpected costs. Traders who consistently keep losses below 50% of their DLL often show better long-term account management. Let’s dive into specific techniques to help you stay on track.

Risk Management Techniques

One effective approach is the "three-strike rule." If you face three consecutive losing trades, cut your position sizes by 50% for the rest of the session. This strategy helps avoid the emotional spiral that can lead to "loss acceleration" and breach your DLL.

Another tip: steer clear of trading during Tier 1 economic data releases. MyFundedFutures prohibits trading 2 minutes before and after these events on Starter and Expert accounts, as slippage during such times can bypass stop losses and trigger a breach. Internal data shows that waiting 15 minutes after major news events reduced trading losses by 43%.

When it comes to contract sizes, always align them with your DLL rather than just your account balance. For example, on a $50,000 account with a $1,200 DLL, trading 3 mini contracts risks $400 per point. Just three points against your position could wipe out your entire daily limit, so choose your contract sizes wisely.

Using Technology to Track Your Losses

Efficient tracking of losses is just as important as planning your trades. Real-time monitoring tools can help you stay within your limits. If you’re using Tradovate, enable the "Accounts" module and configure it to display "DRAWDOWN AUTO LIQ LEVEL" and "DIST DRAWDOWN." These settings will show your current limit and how close you are to breaching it.

The MFFU Dashboard also offers a Daily Loss Guard feature, which tracks your real-time profit and loss, including simulated commissions and fees, throughout your session.

For uninterrupted connectivity and reliable monitoring, QuantVPS ensures your trading platform remains online. This minimizes the risk of technical disruptions that could prevent you from executing protective stops or staying aware of your loss thresholds.

Here’s a quick reference table to help you align your risk limits with your account type:

Account Type	Daily Loss Limit	Recommended Risk Per Trade (10-15% of DLL)	Max Contracts
Starter 50K	$1,200	$120 - $180	3 Minis
Expert 50K	$1,200	$120 - $180	5 Minis
Expert 100K	$2,200	$220 - $330	10 Minis
Starter Plus	None	N/A	3 Minis

Conclusion

The Daily Loss Limit plays a key role in managing risk for MFFU traders. It’s not just about protecting your capital - it’s also about maintaining your composure. For example, on a Starter 50K account, reaching the $1,200 limit stops trading immediately, ensuring losses don’t spiral out of control.

Data shows that traders who stick to disciplined strategies achieve funded status 2.3 times faster. This discipline is what separates the top 1% of traders from those who struggle. It ties directly to the importance of consistent risk tracking and careful trading decisions.

To effectively manage the Daily Loss Limit, traders need strong risk control habits and dependable tools. Using low latency trading VPS options for a stable platform connection is critical - it reduces the chances of technical issues interfering with your ability to track losses or execute necessary risk measures.

When approached with the right mindset, the Daily Loss Limit becomes more than just a restriction. It’s a tool for growth, helping traders focus on sustainable performance. By respecting this limit, you’re not limiting potential - you’re building a solid foundation for long-term success.

FAQs

Does the daily loss limit include commissions and fees?

Yes, the daily loss limit takes commissions and fees into account. It's calculated based on your net profit and loss for the trading day, which includes all trading-related expenses like fees and commissions. Be sure to include these costs when planning your trades to stay within the limit and adhere to MFFU rules.

What time does MFFU’s trading day reset for the daily loss limit?

The MFFU trading day resets at midnight (00:00) server time, which is set to GMT+2. This reset marks the point when the daily loss limit for traders is calculated and enforced.

How can I set a personal stop-loss limit below the daily loss limit?

To manage risk effectively, set a personal stop-loss that falls below your daily loss limit. This means aligning your stop-loss orders with your individual risk tolerance for each trade. Typically, this could range from 0.1% to 0.25% of your trading capital.

Keep a close eye on your cumulative losses throughout the day to ensure they don’t exceed your overall daily loss limit. The daily loss limit acts as a safeguard, halting trading if it’s reached. While the daily limit protects you on a broader scale, personal stop-losses help control risk at the trade level, giving you more precision in managing potential losses.

Yes, the daily loss limit takes commissions and fees into account. It's calculated based on your net profit and loss for the trading day, which includes all trading-related expenses like fees and commissions. Be sure to include these costs when planning your trades to stay within the limit and adhere to MFFU rules.

The MFFU trading day resets at midnight (00:00) server time, which is set to GMT+2. This reset marks the point when the daily loss limit for traders is calculated and enforced.

To manage risk effectively, set a personal stop-loss that falls below your daily loss limit. This means aligning your stop-loss orders with your individual risk tolerance for each trade. Typically, this could range from 0.1% to 0.25% of your trading capital.

Keep a close eye on your cumulative losses throughout the day to ensure they don’t exceed your overall daily loss limit. The daily loss limit acts as a safeguard, halting trading if it’s reached. While the daily limit protects you on a broader scale, personal stop-losses help control risk at the trade level, giving you more precision in managing potential losses.

"}}]}