Drawdown in crypto prop firms: daily vs total limits explained
Daily and max drawdown are the #1 reason traders fail challenges. This guide explains how MOJA Funded measures both limits — with real numbers — so you trade with margin, not surprises.
Why drawdown rules matter more than entries
In a crypto prop firm challenge, you can have a positive-expectancy strategy and still fail if you breach drawdown. Most MOJA Funded accounts that stop early hit the daily loss limit after a revenge session or oversize one volatile trade — not because spot direction was wrong for weeks.
Drawdown is not a vague “risk score”. It is a hard line: exceed it once and the evaluation ends immediately. Understanding daily vs max drawdown before your first trade is cheaper than buying a second challenge.
MOJA Funded uses spot-only evaluation with 5% daily loss and 10% max loss on standard two-step plans. One-step challenges use tighter limits (4% daily / 7% max). Funded accounts keep 5% daily and 10% max with no profit target.
Daily drawdown vs max drawdown
Daily drawdown (5% standard)
Measured from your account balance at the UTC day open. If you start the day at $50,000, you cannot lose more than $2,500 that calendar day. The counter resets at 00:00 UTC — not your local midnight.
Max drawdown (10% standard)
Measured from the starting balance of the current phase. On a $50,000 account, equity cannot fall more than $5,000 below phase start. Unlike daily loss, this does not reset each day — it is cumulative for the phase.
Numeric examples on a $50K account
These reference MOJA Funded two-step rules (5% daily / 10% max). Adjust proportionally for $5K–$200K plan sizes.
| Scenario | Limit | Dollar amount |
|---|---|---|
| Daily loss cap | 5% | $2,500 max loss from today's UTC open balance |
| Max loss cap (phase) | 10% | $5,000 below phase starting balance |
| Phase 1 profit target | 8% | +$4,000 profit to pass Phase 1 |
| Phase 2 profit target | 5% | +$2,500 profit to pass Phase 2 |
How limits apply by phase
Phase 1 & 2 (two-step challenge)
5% daily loss, 10% max loss, 7 minimum trading days per phase with at least one trade per day. Hit +8% in Phase 1, then +5% in Phase 2, without breaking either drawdown rule.
One-step challenge
4% daily loss and 7% max loss with a single +10% profit target. Faster path to funding for traders with mature risk control.
Funded account
No profit target. Same 5% daily / 10% max framework. Focus shifts to consistent withdrawals every 14 days rather than hitting evaluation targets.
Common drawdown mistakes
Practical habits to stay inside limits
Related guides
Trade with limits you understand
Start a MOJA Funded spot challenge with published drawdown rules and no hidden resets.
View challenge plans