Prop Firm with the Largest Drawdown

📊 Best Futures Prop Firms Ranked by Maximum Drawdown (MLL) in 2026

When comparing futures prop firms, one of the most overlooked — but critical — rules is the
maximum loss limit (MLL). This rule sets the maximum amount you can lose before your funded trading account is closed.

A larger drawdown means more breathing room 🧘, less chance of being cut off too early ❌, and more flexibility to run trading strategies that use
bigger stop losses or longer holding times 💹. For many traders, the size of the drawdown can be the difference between passing the evaluation
and scaling into payouts.

Below, we’ve ranked the top prop firms with the biggest drawdowns in 2026, comparing their account sizes, loss limits,
and drawdown types. If you’re still unsure how rules like trailing vs. end-of-day drawdown work, see our
guide to unrealized trailing drawdown 📖.
Keep in mind: profit targets, daily loss limits, and overall pricing are just as important as drawdown when choosing the best futures prop firm.

📉 Prop Firms with the Largest Drawdown – Why It Matters

When choosing a futures prop firm, one of the most overlooked — but critical — factors is the maximum loss limit (MLL).
This is the amount you can lose before your funded account is closed. A larger drawdown means more breathing room 🧘,
less chance of being cut off early ❌, and more flexibility for traders with bigger strategies 💹.

🔹 Tradeify $150K Instant Funding Example

Let’s break it down with the Tradeify $150,000 Lightning Instant Funding account.
This account starts with a $6,000 maximum drawdown. If your equity falls $6,000 below the $150K start balance,
the account is closed. But once you build profits, the drawdown stops trailing.

Example: You make $10,000 in profit, growing the account to $160K. At this point, the drawdown locks at your original $150K starting balance.
Now your effective cushion isn’t $6,000 — it’s $10,000. This is where maximum drawdown transitions into what’s called
absolute drawdown. If your balance ever drops below $150K again, the account closes, but everything above that is protected profit ✅.

🔹 Daily Loss Limit Explained

Many S2F prop firm accounts also use daily loss limit. For Tradeify’s $150K Instant Funding account, the limit is $3,750. If you lose that much in a single day, your account goes into auto-liquidation 🛑.
That means you can’t place new trades until the next day, but the account isn’t closed as long as you didn’t hit the $6,000 max drawdown.
This rule acts like a seatbelt — it prevents traders from blowing up their accounts in one bad day and helps enforce consistency. This daily loss limit can sometimes be dynamic at certain profit targets all disappear altogether.

🤔 Why a Large Drawdown Matters for Futures Traders

Having the largest drawdown in a prop firm account isn’t just about numbers — it’s about trading freedom.
A higher loss limit lets you survive market swings, hold trades longer, and focus on reaching profit targets instead of
babysitting a trailing drawdown. Traders with larger buffers can:

• ✅ Use strategies with bigger stop losses or longer holds
• ✅ Withstand volatility during economic news events 📊
• ✅ Scale multiple accounts without being stopped out too early
• ✅ Trade with more confidence knowing they have extra breathing room

📌 Other Factors Beyond Drawdown

While the maximum loss limit is important, it’s not the only factor to compare.
Smart traders also weigh:

• Account Size: Bigger accounts usually offer higher drawdowns, but also higher profit targets.
• Daily Loss Limits: These cap how much you can lose in one day, regardless of overall drawdown.
• Profit Targets: Large buffers often come with tougher evaluation targets before payouts.
• Trading Rules: Some firms trail unrealized balance intraday, others lock at end-of-day.
  Explore how unrealized intraday trailing drawdown works 📖 for a full breakdown.

⚖️ Balancing Risk and Opportunity

Choosing the right prop firm with the largest drawdown is about finding balance.
A bigger drawdown gives you more room to trade, but it doesn’t guarantee success. You still need discipline,
smart risk management, and consistency. The best prop firm for you depends on whether you value
flexibility (big MLL), low evaluation costs, or faster payouts.
Explore our full list of the best futures prop firms to compare accounts and decide which one fits your trading style.