Prop Firm Drawdown

Prop firm drawdown can be exhausting. Pls what should I do when I’m on drawdown?

By drawdown do you mean the maximum daily loss?

Total drawdown

When faced with a drawdown I always reduce my lot size and stick to my strategy even more religously.

You think you can come out of a 9% drawdown where the total drawdown is 10%?

I would take some days off if the prop firm allows that. It could be that the losing streak is due to a patch of bad luck days. Then when I return I lower my lot size but the risk in lowering the lot size is that the prop firm may see it as a lack of consistency

Hmm, you are right to an extent. I really appreciate this

Prop firms are just capitalizing on peoples greed

Sincerely so. Imagine the number of people who buy and lose prop firms.

There is this popular prop firm called MFF that shut down a while ago, did you hear the story? there is a thread on it

https://www.mytradingland.com/thread/why-was-my-forex-funds-3d7817/1#f8f599

No, I didn’t . I heard only of funding ticks

When you enter a drawdown, the priority is to protect capital, regain control, and rebuild confidence. Based on my experience now, listed below are the things i will do:

1. Pause Trading

Stop trading immediately. Drawdowns often happen because something in your approach or the market has changed. A break prevents emotional decisions and deeper losses.

2. Review Your Trades

Analyze the recent losing trades to understand what went wrong:

Did you follow your rules?

Did you risk too much?

Did the market change?

The goal is to identify the cause, not to blame yourself.

3. Reduce Your Risk

When you return, lower your lot size or exposure. Smaller risk reduces pressure and prevents further damage while you recover.

4. Focus Only on Your Best Setups

Trade less and be selective. Stick to the setups you understand best and avoid risky conditions, such as high-impact news or unclear market structure.

Accept that drawdowns are normal: This is so vital to a traders progress.

Every trader — even professionals — experiences drawdowns.

The difference is that good traders manage them, while emotional traders make them worse.

I will advise you reduce your risk when you are in drawdown and trade just A+ setups. A+ setups are setups that meet all your criteria. Don’t increase your risk until you are back to breakeven. This will help you during drawdown season.