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TopOneFutures Elite Account Drawdown Rules
You're trading an Elite account. You pass the challenge. You get funded. You make $3,000 profit. Then one bad trade drops you to +$500. You check your dashboard:
"Max drawdown violation. Account stopped out."
But I'm still profitable. How did I violate drawdown?
That's trailing max drawdown. Elite accounts don't just have a daily loss limit—they also have a trailing max drawdown that adjusts upward as you make profit. And once you breach it, you're done.
This guide breaks down both drawdown rules on Elite accounts—daily drawdown and trailing max drawdown—how they work together, real-world scenarios where traders get stopped out, and strategies for managing both limits without blowing your account.
Quick heads-up: This article is based on my real experience with TopOneFutures 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 TopOneFutures website or their help center.
Elite Account Drawdown Structure
Elite accounts have two separate drawdown limits that both need to be respected:
Both limits are enforced. You can violate drawdown by hitting either one.
Daily Drawdown: 2.5% Trailing
Daily drawdown is the maximum loss you can take in a single trading day.
Formula:
- Daily drawdown limit = Starting balance of the day × 2.5%
Example ($100k Elite account):
- You start the day at $100k
- Daily drawdown limit: $100k × 0.025 = $2,500
- If you lose more than $2,500 in one day, you're stopped out
How Daily Drawdown Trails
The daily drawdown limit trails your balance at the start of each trading day.
Example:
- Day 1: Starting balance: $100k → Daily limit: $2,500
- Day 2: Starting balance: $103k (made $3k profit Day 1) → Daily limit: $2,575
- Day 3: Starting balance: $105k → Daily limit: $2,625
Key point: The daily limit increases as your balance grows, but it resets daily at market close (4:00 PM ET).
When Does Daily Drawdown Reset?
Daily drawdown resets every day at market close.
Example:
- Monday: You lose $2,400 (close to the $2,500 limit)
- Tuesday at 4 PM ET: Limit resets
- Tuesday: You have a fresh $2,500+ cushion (depending on your starting balance)
Unlike max drawdown (which trails indefinitely), daily drawdown gives you a clean slate every day.
Max Drawdown: 4% Trailing
Max drawdown is the maximum cumulative loss you can take from your highest balance (peak).
Formula:
- Max drawdown limit = Peak balance × 4%
Example ($100k Elite account):
- Starting balance: $100k
- Max drawdown limit: $100k × 0.04 = $4,000
- If you drop below $96k, you're stopped out
How Max Drawdown Trails
The max drawdown limit trails your peak balance.
Example:
- You start at $100k → Max limit: $96k
- You make $5k profit → New peak: $105k → Max limit trails to: $100,800
- You make another $3k → New peak: $108k → Max limit trails to: $103,680
Once the limit trails up, it never goes down—even if you give back profit.
This is the "profit trap."
The Profit Trap Explained
Scenario:
- You make $8k profit → Peak: $108k
- Max drawdown limit trails to: $103,680 (4% below $108k)
- You lose $5k → Balance drops to $103k
Result: ❌ Stopped out. You dropped below $103,680.
Even though you're still up $3k from your starting balance, trailing max drawdown stopped you out.
Daily vs Max Drawdown: Which Gets Violated More?
Daily drawdown violations happen fast—usually in one bad session.
Max drawdown violations sneak up on you over days or weeks (the profit trap).
Real-World Drawdown Violation Examples
Example 1: Daily Drawdown Violation
Elite $100k account:
- Starting balance (Day 1): $100k
- Daily drawdown limit: $2,500
Day 1 trading:
- Trade 1: -$800
- Trade 2: -$600
- Trade 3: -$1,200 (revenge trade)
- Total: -$2,600
Result: ❌ Daily drawdown violated. Account stopped out.
Even though the trader didn't hit max drawdown yet (still at $97,400, above $96k), the daily limit was breached.
Example 2: Max Drawdown Violation (Profit Trap)
Elite $100k account:
- Starting balance: $100k
- Max drawdown limit: $96k
Week 1:
- Make $8,000 profit → Peak: $108k
- Max drawdown limit trails to: $103,680
Week 2:
- Lose $5,000 → Balance: $103k
Result: ❌ Max drawdown violated. Dropped below $103,680. Account stopped out.
The trader is still up $3k from starting balance, but trailing max drawdown stopped them out.
Example 3: Clean Trading (No Violations)
Elite $100k account:
Week 1:
- Monday: +$1,000 → Balance: $101k
- Tuesday: +$1,500 → Balance: $102.5k
- Wednesday: -$500 → Balance: $102k
- Thursday: +$1,000 → Balance: $103k
- Friday: +$500 → Balance: $103.5k
Week 2:
- Monday: +$1,200 → Balance: $104.7k
- Tuesday: +$1,300 → Balance: $106k (hit 6% target)
- Payout requested
Result: ✅ Clean. No daily losses over $2,500. Never dropped below max drawdown limit. Payout approved.
How to Calculate Your Drawdown Limits
Daily Drawdown Formula:
Starting balance of the day × 2.5% = Daily loss limit
Example:
- Start of Monday: $105k
- Daily loss limit: $105k × 0.025 = $2,625
If you lose more than $2,625 on Monday, you're stopped out.
Max Drawdown Formula:
Peak balance × 4% = Max cumulative loss
Example:
- Peak balance: $108k
- Max drawdown limit: $108k - ($108k × 0.04) = $103,680
If you drop below $103,680 at any point, you're stopped out.
When Do Drawdown Limits Reset?
Key difference: Daily drawdown resets every day. Max drawdown only resets after a payout.
Full payout process explained.
Elite vs Instant Sim vs Ignite: Drawdown Comparison
Elite is more complex with two separate limits.
Instant Sim is simpler with one trailing limit.
Full comparison of TopOneFutures drawdown rules.
Strategies for Managing Elite Drawdown
1. Set a Daily Loss Limit at 80% of Max
Don't trade right up to the $2,500 daily limit. Set your personal limit at $2,000 (80%).
Why: Gives you buffer room if a trade moves against you more than expected.
2. Request Payouts Frequently
Don't let profit accumulate. Once you hit 6%, request a payout to reset max drawdown.
Example:
- You're up $8k (peak: $108k, max limit: $103,680)
- Request payout immediately
- Max drawdown resets to $96k (from starting $100k)
Benefit: You get back your full cushion.
3. Reduce Position Size After Big Wins
If you make $3k in one day, reduce your position size for the rest of the week.
Why: Your max drawdown cushion is now tighter. Trading full size increases the risk of hitting the limit.
4. Track Both Limits Manually
Create a spreadsheet that tracks both daily and max drawdown:
DateBalancePeakDaily Limit (2.5%)Max Limit (4%)Room to DailyRoom to MaxJan 8$105k$105k$2,625$100,800$2,625$4,200Jan 9$106k$106k$2,650$101,760$2,650$4,240
Benefit: You always know exactly how much room you have before violating either limit.
5. Avoid Revenge Trading
If you lose $1,500 on a trade, don't immediately jump back in to "make it back."
Why: You're closer to the daily limit now. One more bad trade could stop you out.
Does Drawdown Track Open Positions?
It depends on the phase:
During Elite Challenge:
- Drawdown tracks closed P&L only
- Open positions don't count (yet)
After Funding (Funded Phase):
- Drawdown tracks unrealized P&L (open positions count)
Example (Funded Phase):
- Your closed balance: $105k
- You have an open NQ position: -$2,000 unrealized loss
- Your balance shows: $103k (with open position)
- Max drawdown calculation: Based on $103k (including unrealized loss)
What this means: In the funded phase, holding a losing position can push you closer to the drawdown limit—even before you close it.
Common Elite Drawdown Mistakes
Mistake 1: Not Requesting Payouts
Scenario:
- You make $10k profit
- You keep trading without requesting a payout
- Max drawdown limit is now $106,400 (from peak $110k)
- You lose $7k
- Balance: $103k
- Result: Stopped out (below $106,400)
Solution: Request payouts as soon as you hit 6%. Don't let profit accumulate.
Mistake 2: Revenge Trading After a Bad Day
Scenario:
- You lose $2,000 in the morning
- You have $500 left before hitting daily drawdown
- You take a revenge trade
- You lose $800
- Result: Daily drawdown violated
Solution: If you're down $2k, stop trading for the day. Don't push it.
Mistake 3: Ignoring the Profit Trap
Scenario:
- You're up $8k
- You think "I have $8k cushion"
- But your cushion is only $4,320 (4% of $108k peak)
- You lose $5k and get stopped out
Solution: Calculate your actual cushion based on peak balance, not total profit.
Can You Reset Your Account After a Drawdown Violation?
Yes. Elite accounts allow resets.
Reset process:
- Account gets stopped out
- You pay a reset fee (typically $100–$300)
- Account resets to starting balance
- Drawdown limits reset to starting point
Resets available:
- Unlimited during challenge phase
- Limited after funding (check your account terms)
My Take: Elite's Dual Drawdown is Fair But Requires Discipline
I've been stopped out twice on Elite accounts—once from daily drawdown (revenge trading), once from max drawdown (profit trap).
Both times were my fault. I got complacent.
Here's what I learned:
Daily drawdown is easy to manage if you cut losses early. Don't let one trade turn into a $1,500 loser. Cut it at $500–$700 max.
Max drawdown requires active management. You can't just "set it and forget it." Track your peak balance daily and calculate your cushion.
Request payouts aggressively. Don't wait until you've made $10k. Request at $6k, reset the limit, and start fresh.
Elite's dual drawdown isn't unfair—it's protective. But it's unforgiving if you don't manage it actively.
Summary: Elite Account Drawdown Rules
- Two separate limits: Daily drawdown (2.5% trailing) + Max drawdown (4% trailing)
- Daily limit resets every day at market close (4 PM ET)
- Max limit only resets after a payout request is processed
- Profit trap is real: You can be up $8k, lose $5k, and get stopped out
- Both limits are enforced—you can violate drawdown by hitting either one
- Track both limits manually to avoid surprises
- Request payouts frequently to reset max drawdown and get back your full cushion
The profit trap is the killer. Track your peak balance and calculate your cushion daily to avoid getting stopped out while still profitable.
Your Next Steps
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