Introduction

Passing an evaluation is only the first step—what really matters is keeping your funded account alive long enough to secure consistent payouts. Many traders make the mistake of sizing their trades as if they truly had the full $100,000 or $250,000 account at their disposal. In reality, with most futures prop firms, what you’re actually working with is the drawdown amount—and that’s a fraction of the headline number.

Let’s break down how to size properly in a funded account so you can protect capital, stay consistent, and collect payouts without blowing up too early.

The Misconception of “1% Risk”

A $100,000 funded account typically only gives you around $5,000 in drawdown. If you risk 1% of the full account balance ($1,000 per trade), you only have about four or five trades before the account is gone. That’s not sustainable.

Instead of thinking in terms of account size, always base your risk management on the drawdown amount.

Three Approaches to Risk Sizing

Here are three methods I recommend for funded accounts:

• Fixed Trade Count Method

  • Take your drawdown amount and divide it by the number of losing trades you’re comfortable with.

  • Example: $7,000 drawdown ÷ 8 trades = $875 risk per trade.

  • This gives you a clear structure while allowing flexibility in trade selection.

• Percentage of Drawdown Method

  • Risk no more than 10% of your drawdown per trade.

  • Example: $7,000 drawdown → $700 risk per trade.

  • This approach gives you about 10 trades before hitting max loss.

• Adaptive Risk Method

  • Adjust position sizing based on performance and confidence.

  • Example: If you’re in a drawdown or struggling, scale back from 10% risk per trade to 5% until you regain consistency.

This flexibility ensures you’re not forcing large positions during cold streaks.

The Visual Framework

A simple way to think about funded trading is to categorize yourself within three ranges:

• Conservative Range: 5% risk per trade or less

• Balanced Range: Around 10–12% of drawdown per trade

• Aggressive Range: 15%+ of drawdown per trade

Personally, I stay in the balanced range—about 10–12%. It’s aggressive enough to grow but safe enough to avoid quick blowouts.

Psychology and Capital Preservation

The real goal of funded trading is payouts, not passing evals anymore. That means protecting capital should be your top priority. A few reminders:

• Don’t treat each trade as a chance to “swing for the fences.”

• Stay consistent with position sizing—avoid jumping around unless you’re consciously scaling down to rebuild confidence.

• Remember that smaller risk during tough periods is a strength, not a weakness.

Slow and steady wins the race. With consistent execution, you’ll avoid resets and keep collecting payouts.

Final Thoughts

When trading funded accounts, ignore the big flashy number at the top and focus only on the drawdown buffer. Size your trades according to that, stay disciplined, and adapt risk when needed. With this approach, you’ll not only protect your account but also give yourself the best chance at long-term payouts.