Prop firm risk calculator
Enter your challenge rules and risk per trade. The calculator shows what each trade risks in dollars, how many losses in a row your daily and maximum loss limits can absorb, and how many winning trades the profit target needs.
Assumes each losing trade loses exactly the planned risk. Spreads, commissions, slippage and open-trade equity swings can make real losses larger. This is an educational tool, not financial advice.
How to use the results
The most common way to fail a challenge is not a bad strategy, it is position size that leaves no room for an ordinary losing streak. If fewer than four or five losses fit inside your daily limit, lower your risk per trade before you look for better entries.
Next, compare the number of winning trades you need with how often your strategy actually trades. If the target needs more trades than you can take within a time limit, look at programs without a time limit or with a lower target. Our guide to challenge types explains the trade-offs.
Frequently asked questions
What risk per trade should I use in a prop challenge?
There is no single right answer, but many traders size so that at least four or five consecutive losses fit inside the daily loss limit. On a 5% daily limit that means risking around 1% or less per trade. See how to pass a prop firm challenge.
Does this work for trailing drawdown?
Yes, if you enter the current distance between your equity and the trailing limit as the maximum loss. Trailing limits move up with profits, so recalculate as the account grows. See drawdown rules explained.
Why does the calculator ignore spreads and commissions?
To keep the maths clear. In practice, costs and slippage make each loss slightly larger than planned, so leave a buffer below the limits shown.
What is the break-even win rate?
The share of trades you need to win to break even at a given reward-to-risk ratio, before costs. At 2R it is about 33%, at 1R it is 50%.
