Risk Management Strategies for Prop Traders: Position Sizing and Loss
By Tomas Rieder
Prop firms set drawdown caps and profit hurdles to control risk and decide how much capital traders can access. I'm comparing four firms here, FundingPips, Atlas Funded, The5ers, and One Funded, looking at their max drawdown, daily drawdown, and profit targets. If you pick the wrong parameter mix for your style, you'll feel it in week one.
Overview
Three numbers matter. Max drawdown is how far your equity can fall before the firm pulls the plug. Daily drawdown is the one-day loss ceiling. Profit target is what you need to hit to pass evaluation or unlock funded capital.
Across these four firms, max drawdown runs from 5% to 12%. Daily limits? 3% to 10%. Profit targets span 4% to 10%. Tight parameters choke scalpers and high-frequency traders, your effective leverage drops fast. Loose limits give you room, but you still need discipline or you'll blow the account. No free lunch.
Programs
FundingPips
FundingPips launched in 2022. One challenge format, five account tiers:
| Account Size | Price | Max Drawdown | Daily Drawdown | Profit Target |
|---|---|---|---|---|
| $5K | $32 | 12% | 4% | 8% |
| $10K | $59 | 12% | 4% | 8% |
| $25K | $159 | 12% | 4% | 8% |
| $50K | $269 | 12% | 4% | 8% |
| $100K | $555 | 12% | 4% | 8% |
Two-step challenge. 100% profit split once you pass. On-demand payouts.
They're open to most countries, Venezuela and the UAE excluded. Leverage caps at 2000×. The firm charges $1 per lot.
Atlas Funded
Atlas Funded started in 2024. Multiple challenge types, different splits:
| Challenge Type | Account Size | Max Drawdown | Daily Drawdown | Profit Target | Profit Split | Steps |
|---|---|---|---|---|---|---|
| Instant | $400K-$5K | 10% | 10% | 4% | 100% | 1 |
| TradeLocker | $400K-$5K | 7% | 4% | 10% | 80% | 1 |
| One Step | $100K-$25K | 7% | 4% | 6% | 80% | 1 |
| Instant Pro | $100K-$25K | 7% | 4% | 6% | 80% | 1 |
| Access Challenge | $25K | 10% | 10% | 8% | 100% | 2 |
The "Instant" and "Access Challenge" lines hand you 100% profit splits but watch that daily limit. TradeLocker and One Step drop max drawdown to 7%, but you're hitting a 10% or 6% profit target, higher bar.
Atlas supports TradeLocker, MetaTrader 5, and Match-Trader. EAs work. Copy trading is allowed. US traders locked out. Leverage maxes at 100×, and they charge $3 per lot.
The5ers
The5ers has been around since 2015. Two programs: "Hyper Growth" for fast scaling, "High Stakes" for bigger capital:
| Challenge | Account Size | Max Drawdown | Daily Drawdown | Profit Target | Profit Split | Steps |
|---|---|---|---|---|---|---|
| Hyper Growth | $5K-$50K | 5% | 3% | 10% | 100% | 1 |
| High Stakes 100K | $100K | 10% | 10% | - | - | 2 |
Hyper Growth is the tightest setup I've seen: 3% daily, 5% max drawdown. Position sizing needs to be surgical. But you get 100% profit splits and bi-weekly payouts. Pricing runs $74 to $400 depending on size.
High Stakes 100K? Two-step, looser drawdown policy (10% on both), but profit target and split details aren't published.
The5ers runs on MetaTrader 5, cTrader, and CME. EAs and copy trading both fine. Leverage tops out at 100×.
One Funded
One Funded launched in 2025. Two programs:
| Challenge | Account Size | Max Drawdown | Daily Drawdown | Profit Target | Profit Split | Steps |
|---|---|---|---|---|---|---|
| Beginner Challenge | $200K | 6% | 6% | 7% | 80% | 1 |
| Flash | $5K | 6% | 5% | 5% | 80% | 1 |
Daily and max drawdown match on both programs, simpler mental math. Flash costs $29, so you're in fast. Beginner Challenge is $799, aimed at traders chasing larger allocations.
TradeLocker, MetaTrader 5, cTrader, and MT5 all supported. EAs yes, copy trading no. Leverage capped at 100×. Firm blocks traders from Afghanistan, Russia, and a few other countries.
Platforms and Rules
All four firms lean on MetaTrader 5 or cTrader as their backbone. FundingPips: MT5, cTrader, Match-Trader. Atlas Funded: TradeLocker, MT5, Match-Trader. The5ers: MT5, cTrader, CME. One Funded: TradeLocker, MT5, cTrader, MT5.
EAs work everywhere.
Copy trading? FundingPips doesn't say. Atlas and The5ers allow it. One Funded bans it outright.
Payout methods hit the usual suspects: crypto, bank wire, e-wallets, Visa, Mastercard. FundingPips offers the widest menu, Apple Pay, Google Pay, Skrill, Neteller, PayPal. The5ers and One Funded both support USDT and USDC on Trc20, Erc20, Bep20, Polygon networks.
Disclosure: None of these firms spell out whether drawdown calculations use balance, equity, or a moving average. That's not a minor detail, it's the difference between a manageable limit and a tripwire. You need to ask before you pay.
Offers
FundingPips
- 20% off all evaluations
- 10% off $100K accounts
Recent payouts (July 2026): $109.60 to $8,253.28.
Atlas Funded
- 100% profit split add-on available
- One Step Challenge and One Step Pro Challenge add-ons
The5ers
- Bonuses in Hyper Growth program
- Trading World Championship 2026 coming, cash and funded accounts
Recent payouts (May-June 2025): up to $22,158.
One Funded
- 20% discount this month
- Free challenges, other discounts
Recent payouts (July 9-10, 2026): $308.40 to $2,908.56.
Summary
Risk parameters split wide across these four. FundingPips gives you the highest max drawdown at 12% and an 8% profit target, room for volatility, but that 4% daily cap will bite if you swing too hard.
Atlas Funded lets you pick your tradeoff. The "Instant" tier relaxes both drawdown and daily limits for a 100% split. "TradeLocker" tightens the screws (7% max, 4% daily) but only pays 80%.
The5ers runs the strictest shop on Hyper Growth. 5% max, 3% daily. You'll need 0.5-1% risk per trade, maybe less. In exchange: 100% profit split.
One Funded sits in the middle, 6% max, 5-6% daily, predictable risk math, modest targets.
Key gaps: Not one firm explains whether they calculate drawdown off balance or equity. None publish detailed position sizing rules. You'll need to email them directly. Withdrawal schedules matter too, on-demand versus weekly or bi-weekly changes your cash flow if you're relying on payouts.
Match your style. Scalpers and high-frequency traders want loose daily limits (Atlas Instant, The5ers High Stakes). Swing traders can handle tighter profit targets if max drawdown is wide (FundingPips). Day traders looking for speed should check one-step options like Atlas One Step or One Funded Flash.
Frequently asked questions
What is the difference between max drawdown and daily drawdown?
Max drawdown measures the biggest cumulative drop from your peak balance or equity during the entire challenge or funded period. Daily drawdown is the loss ceiling in a single trading session, open to close.
You can hit a 3% daily loss but stay well under a 10% max if you had profitable days before. Tight daily limits force smaller position sizes. Tight max limits punish traders trying to recover losses aggressively.
Which firm has the tightest risk limits?
The5ers' Hyper Growth. 5% max drawdown, 3% daily. That means position sizes under 1%, often closer to 0.5%. You get 100% profit splits and a 10% profit target, lowest among the four, but zero margin for error.
Do these firms calculate drawdown the same way?
No. The material I've reviewed doesn't specify balance-based, equity-based, or moving-window calculations. Equity-based is tighter because floating losses count immediately. You need to ask the firm before you buy in, this isn't fine print, it's structural.
Can I use Expert Advisors on all these platforms?
Yes. All four permit EAs on MetaTrader 5 and cTrader. Copy trading is a different story, Atlas Funded and The5ers allow it, One Funded blocks it, FundingPips doesn't mention it.
How often can I withdraw profits from a funded account?
Varies. FundingPips and Atlas Funded typically offer on-demand payouts. The5ers and One Funded run bi-weekly or weekly schedules. Check payout policies upfront, delays mess with cash flow planning.
What is the cheapest way to get started with funding?
One Funded's Flash challenge at $29 for a $5K account. FundingPips is next at $32. But cheap doesn't always mean best, lower fees can mean tighter risk limits or smaller profit splits. Read the full rule set before you decide on price alone.