This article covers Prop Firms Using Equity Drawdown Rules and analyzes how leading companies such as FundedNext, Blue Guardian, and Maven Trading adopt more rigid risk management practices such as shaping drawdown from equity rather than balance, and how that relates to trader discipline and the chances of receiving a payout.
Criteria of Prop Firms Using Equity-Based Drawdown Rules
Equity Drawdown Methodology – Firms consider drawdown in relation to the total current equity in the account, inclusive of all closed trades plus the floating profit/loss of any and all open trades.
Equity Drawdown Measurement – Firms are continually assessing the equity balance in accounts to verify that traders remain within the limits of the allowed loss during active sessions.
Floating Loss Drawdown – Losses in open trades count toward the drawdown limit. Consequently, traders risk the status of their account with floating losses that are realized upon the closing of the trades.
Trailing Drawdown – Some firms implement drawdown limits that increase with the trader’s realized profit.
Equity Drawdown Limit – For equity-based drawdown limits, firms establish the maximum loss that a trader can incur before a firm breach occurs and funding is lost.
Daily Drawdown – To manage risk, firms may implement daily limits on drawdown and accounts to minimize loss from traders.
Drawdown Scale – A trader may receive greater funding or a larger account through a scaling program if the trader increases the equity balance of the account.
Equity Breach Drawdown – To avoid breach of equity limits, firms require adequate control of position size, leverage, and overall trading discipline.
Drawdown Breach Transparency – Reputable firms disclose information regarding how drawdown is evaluated on the basis of account equity and provide account breach illustrations for both profit and loss.
Drawdown Compatibility – Based on the rules in equity-based drawdown, particular trading strategies such as scalping, position, swing, and high-velocity trading may or may not be affected.
Trading Drawdown Dashboard – Firms may display dashboards that provide traders with real time information on account equity, drawdown, limits, and account performance.
Account Protection Measures: These rules allow trading firms to limit risks while enabling talented traders to handle funded accounts.
Importance of Prop Firms Using Equity-Based Drawdown Rules
Risk-Based Drawdown Accounts: Prop firms can better manage risk by monitoring both realized and unrealized losses with the use of equity-based drawdown accounts.
Reduces Risk of Drawdown Losses: Equity drawdown accounts prevents account losses from risky behavior.
Promotes Account Equity Management: Trade discipline is highly valued when equity accounts are drawdown based.
More Accurate Performance Assessment: Equity drawdown accounts take into consideration both market exposure and open positions.
Identifies Riskier Trading Behavior: Equity drawdown accounts can prevent risky behavior before the loss becomes irrecoverable.
Promotes Sustainable Profitability: Prop firms can continuously promote profitability rather than focus on high-risk behavior for short-term gains.
Drawdown Transparency: Equity drawdown accounts improve clarity on funding accounts and reduce the likelihood of a violation.
Equity Drawdown Account Benefits: Account equity gives traders a guaranteed benefit of scaling.
Creates a Stable Trading Environment: Equity-based systems promote the focus on sustainable trading.
Risk Control of Equity-Based Systems: Because of the rapid nature of equity-based systems, trading risk can be controlled during market-moving events.
Creates an Institutional Environment: Risk-based drawdowns accounts help traders develop a less retail mindset.
Improves Risk-Based Drawdown Accounts: A risk-based drawdown account improves trading decisions within the boundary of risk.
Key Point & Prop Firms Using Equity‑Based Drawdown Rules
| Prop Firm | Key Points |
|---|---|
| FundedNext | • Offers multiple challenge models with flexible trading rules• Provides funded accounts with high profit splits• Supports MT4, MT5, and other trading platforms• Known for fast payouts and trader-friendly conditions• Offers scaling plans for successful traders |
| Blue Guardian | • Provides various evaluation programs for forex traders• Offers competitive profit-sharing models• Includes flexible drawdown rules and trading conditions• Supports multiple account sizes• Focuses on helping traders grow through scaling opportunities |
| Maven Trading | • Offers professional prop trading challenges• Provides access to funded trading accounts• Includes risk management-based evaluation systems• Supports different trading strategies• Designed for traders seeking long-term funding opportunities |
| Goat Funded Trader | • Provides affordable entry-level challenges• Offers high profit split options• Supports forex, crypto, indices, and commodities trading• Provides instant funding options on selected plans• Known for flexible trading rules and frequent promotions |
| The Trading Pit | • Offers global prop trading competitions and challenges• Supports multiple asset classes including forex, futures, and CFDs• Provides professional trading environments• Includes structured evaluation phases• Focuses on trader development and performance tracking |
| Bulenox | • Specializes in futures trading funding programs• Offers evaluation accounts with clear rules• Provides access to professional futures markets• Supports platforms like NinjaTrader and Rithmic• Popular among futures traders looking for funded accounts |
| Earn2Trade | • Focuses mainly on futures trader education and funding• Offers The Gauntlet Mini and Trader Career Path programs• Provides detailed trading analytics and feedback• Supports professional futures platforms• Helps traders build disciplined trading skills |
| City Traders Imperium (CTI) | • Offers forex funding programs with multiple account sizes• Provides one-step and two-step evaluation options• Includes scaling plans for successful traders• Offers educational resources and mentoring• Known for structured risk management rules |
| DNA Funded | • Provides funded trading challenges for retail traders• Offers different account sizes and evaluation models• Includes competitive profit split structures• Supports multiple trading instruments• Focuses on transparent funding conditions |
| E8 Markets | • Offers modern prop trading programs with flexible challenges• Supports forex, commodities, indices, and crypto trading• Provides high profit-sharing opportunities• Includes scaling plans for successful traders• Known for advanced trader dashboards and technology-driven solutions |
1. FundedNext
FundedNext began in 2021 in the UAE. They offer accounts ranging from $15k to $200k at fees of $59 to $1,099. FundedNext offers draws of 80-95% profit, which is among the highest in the industry.
FundedNext has a drawdown of equity, and uses both static and end-of-day trailing rules to account for floating losses.
FundedNext pays back challenge fees after the first payout, meaning that the traders would not have to spend money for the challenge after the first payout. FundedNext is among the prop firms that uses equity-based drawdown rules.
| Feature | Details |
|---|---|
| Founded | 2021 (UAE) |
| Fees | $59 – $1,099 |
| Max Funding | $200K |
| Profit Split | 80–95% |
| Drawdown Method | Static & end‑of‑day trailing equity |
2. Blue Guardian
Founded in 2022, Blue Guardian offers accounts ranging from $25k to $200k at fees of $87 to $897. Blue Guardian offers accounts that can be scaled up to $4M, one of the largest scaling opportunities. Profit splits range from 85 to 90%.
Blue Guardian has an equity drawdown of 6% with a 4% daily trailing limit. Drawdown refunds are available after 4 payouts. Of the prop firms that use equity-based drawdown, Blue Guardian is one of the better firms for traders who can handle tighter daily limits, but are looking for multi-million scaling.
| Feature | Details |
|---|---|
| Founded | 2022 |
| Fees | $87 – $897 |
| Max Funding | $4M scaling |
| Profit Split | 85–90% |
| Drawdown Method | 6% max, 4% daily trailing equity |
3. Maven Trading
Profit splits are competitive at 80-90%. Their drawdown method is equity-based, incorporating daily resets, and offers trailing/static options, which makes risk management more stringent than balance-based firms. Maven promotes trader development and offers scaling opportunities, as well as transparent practices.
As one of the Prop Firms Using Equity-Based Drawdown Rules, Maven Trading attracts flexible traders wanting to draw down on account sizes, versus equity-based drawdowns, which account for unrealized losses. Traders are expected to practice disciplined risk management intraday.
| Feature | Details |
|---|---|
| Founded | 2022 (UAE) |
| Fees | $89 – $499 |
| Max Funding | $1M |
| Profit Split | 80–90% |
| Drawdown Method | Equity‑based daily reset, trailing/static mix |
4. Goat Funded Trader
Goat Funded Trader began in 2021 and offers accounts of up to $400K at cost from $47 to $299. Profit splits of 80–100% are among the best in the industry. Goat Funded Trader employs an equity drawdown method of a 3% daily limit with a 6% trailing equity drawdown.
Goat Funded Trader is known for fast payouts and flexible rules for aggressive traders able to meet daily limits. Goat Funded Trader is one of the Prop Firms Using Equity-Based Drawdown Rules, rewarding highly successful traders with near full profit retention.
| Feature | Details |
|---|---|
| Founded | 2021 |
| Fees | $47 – $299 |
| Max Funding | $400K |
| Profit Split | 80–100% |
| Drawdown Method | 3% daily, 6% trailing equity |
5. The Trading Pit
Founded in 2022 in Liechtenstein, The Trading Pit provides accounts of up to $150K with fees ranging from $99 to $289 plus additional activation fees. Split profits are set at 80% and scaling opportunities are available.
They use an equity based drawdown method with end-of-day trailing rules where floating losses count. The Trading Pit focuses on development within the prop trading space and their broker partnerships promote long-term growth within trading, which can be an attractive offer for traders.
The Trading Pit is also one of the Prop Firms Using Equity-Based Drawdown Rules which has structured risk management combined with scaling opportunities for traders who have maintained discipline.
| Feature | Details |
|---|---|
| Founded | 2022 (Liechtenstein) |
| Fees | $99 – $289 + activation |
| Max Funding | $150K |
| Profit Split | 80% |
| Drawdown Method | End‑of‑day trailing equity |
6. Bulenox
Bulenox, based in the US since 2022, has a $250K account cap with $145 to $535 fees. For account balances up to $10K, the profit split is 100%, and 90% thereafter, which incentivizes early profit withdrawals.
Bulenox’s risk management has become more advanced due to their equity-based drawdown, which combines real-time and end-of-day trailing policies.
Bulenox, unlike other firms, has opted for a subscription model, which grants traders continuous access to the program and funded accounts.
As one of the Prop Firms Using Equity-Based Drawdown Rules, their drawdown policies reward traders with high profit retention, but Bulenox enforces strict profit protection that is intraday managed drawdown.
| Feature | Details |
|---|---|
| Founded | 2022 (USA) |
| Fees | $145 – $535 |
| Max Funding | $250K |
| Profit Split | 100% first $10K, then 90% |
| Drawdown Method | Real‑time & end‑of‑day trailing equity |
7. Earn2Trade
More recently, Earn2Trade was established in the US in 2017. They have accounts reaching $400K with a monthly cost of $170 for the Gauntlet Mini program. Profit splits being at 80% with scaling for consistent traders.
Their drawdown method is equity-based with end-of-day trailing rules, meaning that floating losses are counted for limits. They focus heavily on education by offering training programs and funded accounts.
Earn2Trade is very appealing to traders because they are one of the Prop Firms Using Equity-Based Drawdown Rules. They offer traders the opportunity to learn and to be funded, however, the traders must be prepared to deal with the equity-based drawdown rules.
| Feature | Details |
|---|---|
| Founded | 2017 (USA) |
| Fees | $170/mo (Gauntlet Mini) |
| Max Funding | $400K |
| Profit Split | 80% |
| Drawdown Method | End‑of‑day trailing equity |
8. City Traders Imperium
Launched in 2018 in the UK, City Traders Imperium provides up to $4M scaling accounts with fees between $79 and $4,799. Profit splits go as high as 100%. In contrast to most firms, CTI employs a balance‑based static drawdown method, so unlike CTI, most firms CTI competes with are equity‑based models.
CTI goes beyond its competitors with equity‑based models. Among Prop Firms Using Equity‑Based Drawdown Rules, CTI is especially popular with traders because CTI prefers static limits, thus having a long stretch of scaling with a great degree of flexibility as opposed to tied equity.
| Feature | Details |
|---|---|
| Founded | 2018 (UK) |
| Fees | $79 – $4,799 |
| Max Funding | $4M scaling |
| Profit Split | 70–100% |
| Drawdown Method | Balance‑based static drawdown (no trailing) |
9. DNA Funded
DNA Funded is an Australian firm, founded in 2024, that allows up to $600K accounts with fees between $49 and $1,209, in addition to an 80-90% profit split. They utilize equity-based, static, and end of day trailing drawdown methods.
DNA Funded has built a reputation based on their drawdown methods and a commitment to improving transparency and trader development.
For disciplined traders, DNA Funded is a progressive firm among the Prop Firms Using Equity-Based Drawdown Rules, in that it offers reasonably priced accounts with strict risk management and high profit potential, while requiring the traders to comply with equity-based drawdown limits.
| Feature | Details |
|---|---|
| Founded | 2024 (Australia) |
| Fees | $49 – $1,209 |
| Max Funding | $600K |
| Profit Split | 80–90% |
| Drawdown Method | Static & end‑of‑day trailing equity |
10. E8 Markets
Founded in the USA and Czech Republic in 2021, E8 Markets offers accounts up to $500K at a cost between $125 and $1,627, with an 80-100% profit split, among the highest in the trade. They allow flexible drawdown in the form of static, intraday, or end of day trailing equity methods.
E8 is a technology and transparency centric firm, appealing to traders who value modern trading techniques. Being among the Prop Firms Using Equity-Based Drawdown Rules, E8 Markets balances flexible risk management, large profit potential, and scalable accounts.
| Feature | Details |
|---|---|
| Founded | 2021 (USA/CZ) |
| Fees | $125 – $1,627 |
| Max Funding | $500K |
| Profit Split | 80–100% |
| Drawdown Method | Configurable: static, intraday, or end‑of‑day trailing equity |
Comparison Table
| Prop Firm | Founded | Fees | Max Funding | Profit Split | Drawdown Method |
|---|---|---|---|---|---|
| FundedNext | 2021 (UAE) | $59 – $1,099 | $200K | 80–95% | Static & end‑of‑day trailing equity |
| Blue Guardian | 2022 | $87 – $897 | $4M scaling | 85–90% | 6% max, 4% daily trailing equity |
| Maven Trading | 2022 (UAE) | $89 – $499 | $1M | 80–90% | Equity‑based daily reset, trailing/static mix |
| Goat Funded Trader | 2021 | $47 – $299 | $400K | 80–100% | 3% daily, 6% trailing equity |
| The Trading Pit | 2022 (Liechtenstein) | $99 – $289 + activation | $150K | 80% | End‑of‑day trailing equity |
| Bulenox | 2022 (USA) | $145 – $535 | $250K | 100% first $10K, then 90% | Real‑time & end‑of‑day trailing equity |
| Earn2Trade | 2017 (USA) | $170/mo (Gauntlet Mini) | $400K | 80% | End‑of‑day trailing equity |
| City Traders Imperium | 2018 (UK) | $79 – $4,799 | $4M scaling | 70–100% | Balance‑based static drawdown |
| DNA Funded | 2024 (Australia) | $49 – $1,209 | $600K | 80–90% | Static & end‑of‑day trailing equity |
| E8 Markets | 2021 (USA/CZ) | $125 – $1,627 | $500K | 80–100% | Configurable: static, intraday, or end‑of‑day trailing equity |
Conclusion
Prop firms that consider drawdown based on equity not balance, have a floating loss containment that requires tighter risk management from traders.
Although this method is a bit more difficult for traders, it effectively protects the firm’s capital. For strict intraday risk management, traders can consider FundedNext, Blue Guardian, Maven Trading and Goat Funded Trader. For relaxed overall risk management, City Traders Imperium, provides static balance drawdown limits.
The Prop Firms Using Equity Based Drawdown Rules allows traders to select a firm based on their trading style. For aggressive traders, firms that have tighter risk management and higher payouts are preferable.
Conservative traders can select a firm that has static drawdown models and a long-term scaling plan. Firms that utilize equity based drawdown models have the potential for strong profit opportunities.
FAQ
What is equity‑based drawdown?
Equity‑based drawdown measures losses from the highest equity point, including floating losses. This makes risk management stricter than balance‑based drawdown.
Why do prop firms use equity‑based drawdown?
It protects firm capital by ensuring traders cannot ignore floating losses. It enforces discipline and prevents over‑leveraging during volatile market conditions.
Which prop firms use equity‑based drawdown?
Major firms include FundedNext, Blue Guardian, Maven Trading, Goat Funded Trader, The Trading Pit, Bulenox, Earn2Trade, DNA Funded, and E8 Markets.
Is equity‑based drawdown harder than balance‑based?
Yes. Since floating losses count, traders must manage intraday volatility carefully. Balance‑based drawdown is more forgiving, but equity‑based is stricter.
Which firm offers the best profit split?
Goat Funded Trader and FundedNext lead with splits up to 95–100%, while others like Earn2Trade and The Trading Pit offer around 80%.
