Prop firm risk calculator
On a prop firm account, the right risk per trade is the most you can lose each time without one rough day or one rough week breaking the rules. Enter account size, daily loss limit, maximum drawdown and how much of it is used, trades per day and the losing streak you want to survive, and the calculator returns a safe risk per trade. Add your stop and the value of a point or pip, and it converts that into contracts or lots.
The risk each limit allows
The largest risk per trade each rule would allow. The lower of the two is your safe risk.
Risk for longer and shorter losing runs
Planning for a longer losing run means smaller trades. Contracts or lots are worked out from your stop and point value.
| Losing streak | Risk per trade | % of account | Contracts or lots | Losses to hit daily limit |
|---|
How the safe risk is set
Two rules can close a prop firm account: the daily loss limit and the maximum drawdown. Trades are sized so that losses you should expect cannot break either one, and the stricter result wins.
Daily limit
Assume every trade of the day could lose.
by day = daily limit ÷ trades per day
Drawdown room left
What remains of the maximum drawdown.
room = max drawdown − already used
Losing run
The run you choose has to fit inside the remaining room.
by drawdown = room ÷ losing streak
Safe risk
The smaller of the two figures.
safe risk = min(by day, by drawdown)
Contracts or lots
What one contract loses at the stop, then rounded down.
size = safe risk ÷ (stop × point value)
Prop firm risk FAQ
How much should one trade risk on a prop firm account?
Little enough that your worst normal day and your worst normal losing run both stay inside the rules. With a $2,500 daily limit and up to four trades a day, risking much over $600 a trade can end the account in one bad session. The calculator tests both limits and uses the tighter one.
Which losing streak should I plan for?
A longer one than you expect. At a 45 percent win rate, eight or more losses in a row will probably happen at some point over a few hundred trades, so planning for 6 to 10 in a row is common.
Why size on the room left instead of the full drawdown?
Because earlier losses have already used some of it. If you are $1,800 into a $5,000 drawdown, a streak only needs to cost $3,200 to finish the account, so trades are sized on what is really left.
How do I convert dollar risk into contracts or lots?
Divide the dollars you can risk by what one contract or lot loses at your stop: stop distance times the value of a point or pip. A 10-point stop on a $50-a-point contract risks $500 per contract.
Should risk go up as the account grows?
With trailing drawdowns the remaining room can shrink as you set new highs, so risk may need to fall, not rise. With static drawdowns, profit adds to your room. Recalculate whenever your balance or breach level moves.
How does this affect the profit target?
Smaller risk means more trades to reach the target, so with a time limit you need a balance between the two. Our prop firm challenge calculator simulates pass rates at different risk levels.