AquaFutures Wave Stop Explained: The 2% Floating Loss Limit on Funded Accounts

Written by Paul

Published on

January 10, 2026

Wave stop is AquaFutures' version of a floating loss limit—a real-time intraday drawdown tracker that breaches your account if you drop 2% below your starting balance at any point during the session, even if you recover by close.

This rule only applies to funded accounts, not evaluations. And it's separate from your 5% max drawdown—wave stop operates intraday, while the 5% drawdown operates on a longer timeframe (EOD for most accounts).

Quick heads-up: This article is based on my real experience with Aquafutures and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check Aquafutures´s website or their faq page.

Think of wave stop as a 2% leash that's attached to your starting balance each day. If your equity drops 2% below where you started the session, you breach immediately—no second chances, no recovery window.

I'm breaking down exactly how wave stop works, when it triggers, how it differs from the 5% max drawdown, and how to avoid violating it.

What Is Wave Stop?

Wave stop is a 2% floating loss limit that tracks your intraday equity in real-time on funded accounts. If your account equity drops 2% below your starting balance at any point during the session, you breach immediately.

Example: You start Monday with $50,000 (your closing balance from Friday). Your wave stop threshold is $49,000 (2% below $50,000).

During Monday's session, your open positions drop your equity to $48,900. You've breached wave stop—even though you're only down $1,100 total, and even if you would have recovered to -$500 by close.

Wave stop is intraday—it updates in real-time as you trade. It's not calculated at market close like EOD drawdown.

When Does Wave Stop Apply?

Wave stop only applies to funded accounts—not evaluation accounts.

On evaluations:

Beginner accounts: 2.5% daily loss limit (intraday) + 5% max drawdown (EOD)
Standard accounts: No daily loss limit + 5% max drawdown (intraday)

On funded accounts:

2% wave stop (intraday) + 5% max drawdown (EOD or intraday depending on original account type)

The 2% wave stop replaces the daily loss limit once you transition to funded. It's stricter than Beginner's 2.5% daily limit because it's a floating limit—it moves with your starting balance, not your high water mark.

How Wave Stop Differs From Daily Loss Limits

The daily loss limit on Beginner evaluation accounts is fixed at 2.5% of your starting balance. It doesn't move.

Wave stop is a floating 2% that resets each day based on your closing balance from the previous day.

Example:

Beginner Eval Daily Loss Limit:

Starting balance: $50,000
Daily loss limit: $1,250 (2.5%)
You make $2,000 on Monday, close at $52,000
Tuesday's daily loss limit: still $1,250 (2.5% of original $50K)

Wave Stop on Funded Account:

Starting balance: $50,000
Wave stop: $1,000 (2% of $50K)
You make $2,000 on Monday, close at $52,000
Tuesday's wave stop: $1,040 (2% of new starting balance $52,000)

Wave stop tracks your daily starting balance, not your original starting balance. As your account grows, your wave stop cushion grows proportionally.

How Wave Stop Resets Daily

Wave stop resets every day at 4:00 PM ET based on your closing equity from the previous session.

Example:

Monday closing balance: $51,000
Tuesday starting balance: $51,000
Tuesday wave stop threshold: $49,980 (2% below $51,000)

If you close Tuesday at $52,500, Wednesday's wave stop threshold resets to $51,450 (2% below $52,500).

The 2% window is measured from your starting balance each morning, not from your intraday high. If you're up $2,000 intraday and then lose $3,000, your wave stop isn't measured from the intraday high—it's measured from where you started the session.

Wave Stop vs 5% Max Drawdown: What's the Difference?

Wave stop (2%) and the 5% max drawdown are two separate rules that both apply to funded accounts.

Wave Stop (2%):

Measured intraday in real-time
Based on daily starting balance
Resets every day at close
Operates independently from your high water mark

5% Max Drawdown:

Measured from your all-time high water mark
Trailing drawdown (moves up with profits, never down)
Never resets—permanent from Day 1
Tracks your highest account balance ever

You can breach either rule independently:

Example 1: You breach wave stop but not max drawdown

Starting balance Monday: $50,000 (high water mark: $52,000)
Wave stop threshold: $49,000 (2% below $50K)
Max drawdown threshold: $49,500 (5% below $52K high water mark)
You drop to $48,800 intraday → Wave stop breach ❌

Example 2: You breach max drawdown but not wave stop

Starting balance Monday: $50,000 (high water mark: $55,000)
Wave stop threshold: $49,000 (2% below $50K)
Max drawdown threshold: $52,250 (5% below $55K high water mark)
You close Monday at $49,200 → Max drawdown breach ❌

Both rules are enforced simultaneously. You need to stay above both thresholds at all times.

Can You Recover From a Wave Stop Violation?

No. Wave stop breaches are immediate and irreversible. If your equity drops 2% below your starting balance at any point during the session, your account terminates immediately—even if you would have recovered by close.

Example: You start at $50,000 (wave stop: $49,000). At 10:30am, your equity drops to $48,900. Your account breaches.

Even if you recover to $50,500 by close, it doesn't matter—the breach happened intraday at $48,900.

This is the danger of wave stop. It's not measured at close like EOD drawdown—it's measured tick-by-tick in real-time.

How to Calculate Your Wave Stop Threshold

Formula: Wave Stop Threshold = Starting Balance × 0.98

Example calculations:

Starting Balance	2% Wave Stop	Threshold (Breach Point)
$25,000	$500	$24,500
$50,000	$1,000	$49,000
$75,000	$1,500	$73,500
$100,000	$2,000	$98,000

On a $50K funded account, you have 20 ES points of cushion with 6 contracts before wave stop triggers. That's tight—one bad 15-point trade puts you dangerously close to breach.

Wave Stop in Points Per Contract

Here's how much room you have before wave stop triggers, based on account size and contracts traded:

$50,000 starting balance ($1,000 wave stop cushion):

3 ES contracts: 33 points
6 ES contracts: 20 points
9 ES contracts: 13 points

$100,000 starting balance ($2,000 wave stop cushion):

6 ES contracts: 40 points
9 ES contracts: 26 points
15 ES contracts: 16 points

The more contracts you trade, the faster you approach wave stop. With 9 contracts on a $50K account, you only have 13 ES points before breach—one bad trade can end your account.

Does Wave Stop Apply During Overnight Sessions?

Yes, but there's nuance. Wave stop tracks your equity 24 hours a day—overnight sessions (6:00pm-9:30am ET) are included.

If you hold positions overnight and your equity drops 2% below your starting balance at 3:00am, you breach immediately—even though it's the overnight session.

This is why most funded traders avoid holding overnight positions. You're exposed to wave stop risk for 16+ hours when the market is thin and spreads are wide.

The smart play: close all positions by 4:00pm ET unless you're intentionally swing trading—and even then, use extremely small size to minimize wave stop exposure.

How to Avoid Wave Stop Violations

Here's how to protect yourself from wave stop breaches:

1. Trade Smaller Size

The tighter your wave stop cushion, the smaller your position size should be. On a $50K account with 6 contracts, you only have 20 ES points—use 3-4 contracts max if you want breathing room.

2. Use Tight Stops

With a 2% intraday cushion, you can't afford to hold losing trades hoping they'll recover. Use disciplined stops (10-15 points on ES) and cut losers quickly.

3. Don't Trade Through High Volatility

Major news events (NFP, FOMC, CPI) can move ES 50+ points in 30 seconds. If you're holding positions during a major release and the move goes against you, wave stop can breach before you react.

Close positions before major news or trade extremely small size.

4. Close Positions Before Close

If you're down $800 intraday and you're close to wave stop, don't try to "recover by close." Your account could breach intraday before you get the chance. Take the loss, reset tomorrow.

5. Track Your Cushion in Real-Time

Know where your wave stop threshold is at all times. If you start at $50,000 and you're at $49,200, you're only $200 away from breach—don't take any more trades unless you're confident.

Does Wave Stop Replace the Daily Loss Limit?

Yes—on funded accounts. Once you transition from evaluation to funded, the daily loss limit (2.5% on Beginner accounts) is replaced by 2% wave stop.

Wave stop is stricter than the daily loss limit:

Daily loss limit: 2.5% fixed
Wave stop: 2% floating (resets daily based on starting balance)

On Beginner evaluations, you can lose $1,250/day (2.5% of $50K) every day without breaching—as long as you don't hit your 5% max drawdown.

On funded accounts with wave stop, you can only lose $1,000 from your starting balance (2%) before breaching. And if your account grows to $55,000, your wave stop cushion grows to $1,100—but it's still tighter than the fixed $1,250 daily limit on evaluations.

Can You Disable Wave Stop?

No. Wave stop is a mandatory rule on all AquaFutures funded accounts. You can't opt out or disable it.

If you don't want to deal with wave stop, your only option is to trade Instant funded accounts or stick with evaluation accounts (which don't have wave stop).

But all funded accounts that transitioned from evaluation-based accounts have wave stop—it's part of the funded account structure.

Why Does Wave Stop Exist?

Wave stop exists to protect AquaFutures from catastrophic losses on funded accounts. Without it, a trader could:

Lose $3,000 intraday
Hold hoping to recover
Lose another $2,000
Breach the 5% max drawdown at close

With wave stop, the account breaches at -$1,000 intraday, preventing the full $5,000 loss from happening.

From AquaFutures' perspective, wave stop is a risk management tool. From a trader's perspective, it's a tight leash that requires disciplined stops and smaller position sizes.

What Happens If You Breach Wave Stop?

If you breach wave stop, your funded account terminates immediately. You lose:

Access to the funded account
All buffer profits (the 40% holdback)
Any pending payout requests

You keep:

Profits already withdrawn before the breach

Example: You made $5,000 total on the funded account. You withdrew $3,000 (60%), and $2,000 is in the buffer (40%). You breach wave stop.

You keep: $3,000 (already withdrawn)You lose: $2,000 (buffer) + the funded account

This is why most funded traders trade extremely conservatively compared to their evaluation trading. One bad wave stop breach can wipe out weeks of buffer profits.

For a full breakdown of how payouts and buffer profits work, see the payout process guide.

Wave Stop on Multiple Funded Accounts

If you have multiple funded accounts, wave stop applies independently to each account. Breaching wave stop on one account doesn't affect your other accounts.

Example: You have 2 funded $50K accounts. You breach wave stop on Account A. Account A terminates, but Account B remains active.

You can continue trading Account B normally and start a new evaluation to replace the breached Account A.

Final Thoughts: Wave Stop Is the Real Challenge on Funded Accounts

Wave stop is stricter than most traders expect. The 2% floating limit gives you very little room for error—especially if you're trading 6+ contracts.

Most traders pass their evaluations and then breach their funded accounts on wave stop within the first month. They get comfortable during the eval (where daily loss limits are wider) and then trade the same size on funded accounts—where wave stop catches them.

The transition from evaluation to funded requires a mental shift: trade smaller, use tighter stops, and never hold hoping to recover. One bad intraday swing can end your funded account before you get a chance to fix it.

If you want to survive wave stop long-term, you need to trade like you're one bad trade away from losing everything—because you are.

Frequently Asked Questions

What is wave stop at AquaFutures?

Wave stop is a 2% floating loss limit that tracks your intraday equity in real-time on funded accounts. If your account equity drops 2% below your starting balance at any point during the session, you breach immediately—even if you would have recovered by close.

When does wave stop apply?

Wave stop only applies to funded accounts, not evaluations. Once you transition from evaluation to funded, wave stop replaces the daily loss limit and operates alongside the 5% max drawdown.

Can I recover from a wave stop violation?

No. Wave stop breaches are immediate and irreversible. If your equity drops 2% below your starting balance intraday, your account terminates—even if you recover by close. There are no second chances.

How is wave stop different from the daily loss limit?

The daily loss limit (2.5% on Beginner evaluations) is fixed based on your original starting balance. Wave stop (2% on funded accounts) is a floating limit that resets daily based on your closing balance from the previous day. As your account grows, wave stop grows proportionally.

Does wave stop apply overnight?

Yes. Wave stop tracks your equity 24 hours a day, including overnight sessions (6:00pm-9:30am ET). If you hold positions overnight and your equity drops 2% below your starting balance at 3:00am, you breach immediately.

Can I disable wave stop on my funded account?

No. Wave stop is mandatory on all AquaFutures funded accounts. You can't opt out or disable it. If you don't want to deal with wave stop, your only option is to trade Instant funded accounts or stick with evaluation accounts.

How much room do I have before wave stop triggers?

On a $50K funded account, you have $1,000 of cushion (2%). With 6 ES contracts, that's 20 points. With 9 ES contracts, that's 13 points. The more contracts you trade, the faster you approach wave stop.

What happens if I breach wave stop?

Your funded account terminates immediately. You lose access to the account, all buffer profits (40% holdback), and any pending payout requests. You keep profits already withdrawn before the breach.