The Trading Pit vs. MyFundedFutures: End-of-Day Drawdown Comparison

You're comparing prop firms and you've heard that "end-of-day drawdown" changes everything. You want to know: which firm gives you more breathing room during the trading session without risking a blown account?

Here's the straight answer: MyFundedFutures uses pure end-of-day (EOD) drawdown across all accounts—you can drop 15% intraday as long as you recover before 5 PM ET. The Trading Pit uses static drawdown (checked intraday) on Prime accounts and trailing drawdown on Classic accounts—meaning your drawdown is monitored continuously in real-time, not just at market close.

If you're a scalper who swings for big intraday moves or holds positions through volatile sessions, MyFundedFutures' EOD rules give you significantly more flexibility. If you prefer the discipline of hard intraday limits that prevent catastrophic losses, The Trading Pit's approach keeps you safer. This article breaks down exactly how each firm calculates drawdown, what happens during volatile sessions, and which structure fits your trading style. As of December 2025, these drawdown rules are current.

Key Takeaways: Your Instant Answer

• MyFundedFutures: Pure EOD drawdown — checked only at 5 PM ET market close; intraday swings don't matter.
• The Trading Pit: Real-time monitoring — static drawdown (Prime) or trailing (Classic) checked continuously.
• Intraday flexibility: MyFundedFutures wins — you can drop $8K on a $50K account during the day and recover by close.
• Risk protection: The Trading Pit wins — hard limits prevent you from blowing up mid-session.
• Swing traders: MyFundedFutures — hold overnight positions without intraday volatility stress.
• Scalpers (tight stops): The Trading Pit — real-time monitoring matches your risk management style.
• News traders: MyFundedFutures — survive FOMC volatility spikes if you recover by 5 PM.
• Beginner-friendly: The Trading Pit — real-time limits force better risk management habits.
• Max drawdown (evaluation): MyFundedFutures 6% EOD vs. TTP 7-10% static (varies by account).
• Max drawdown (funded): MyFundedFutures 4% EOD vs. TTP 5-7% static/trailing (varies by account).

What "End-of-Day Drawdown" Actually Means

EOD Drawdown (MyFundedFutures)

Definition: Your account equity is checked only once per day at market close (5 PM ET for US futures). Intraday fluctuations are ignored.

Example:

Starting balance: $50,000
Max drawdown: 6% = $3,000 loss limit
Hard floor: $47,000

Intraday trading session:

• 9:30 AM: Open long ES, position moves against you
• 10:00 AM: Account equity drops to $45,500 (-$4,500 intraday)
• You are NOT breached because it's not 5 PM yet
• 2:00 PM: Position recovers, you close at $48,200 (-$1,800)
• 5:00 PM: Market close snapshot = $48,200
• Result: Account is safe. You never breached $47,000 at market close.

The key: You can experience massive intraday drawdowns (technically -9% in the example) as long as you recover before 5 PM ET.

Real-Time Drawdown (The Trading Pit)

Definition: Your account equity is monitored continuously throughout the trading session. Breach the threshold at any moment = account closed immediately.

Example (same scenario, TTP rules):

Starting balance: $50,000 (Futures Prime)
Max static drawdown: 7% = $3,500 loss limit
Hard floor: $46,500 (never moves)

Intraday trading session:

• 9:30 AM: Open long ES, position moves against you
• 10:00 AM: Account equity drops to $45,500
• BREACH — you fell below $46,500 threshold
• Account closed immediately — you cannot trade anymore
• Position is force-closed by the firm (if still open)

The key: Any intraday dip below your threshold = instant account termination, regardless of whether you recover.

Visual Comparison: Same Trade, Different Outcomes

Outcome: MyFundedFutures trader survives. The Trading Pit trader is out.

The Trading Pit Drawdown Rules: Account-by-Account Breakdown

The Trading Pit doesn't have one unified drawdown system—it varies by account type.

Futures Prime: Static Drawdown (Real-Time)

Challenge phase:

• Max drawdown: 7% static
• Monitoring: Real-time, continuously checked
• Type: Static (threshold never moves)

Example ($100K account):

Starting balance: $100,000
Hard floor: $93,000 (never changes)

If your equity touches $92,999 at any moment—even for one second—account is breached.

Funded phase:

• Max drawdown: 5% static
• Same monitoring: Real-time

Funded example ($100K):

Starting balance: $100,000
Hard floor: $95,000

Any dip below $95,000 = breach.

Futures Classic: Trailing Drawdown (Real-Time)

Challenge phase:

• Max drawdown: 10% trailing
• Monitoring: Real-time, continuously checked
• Type: Trailing (moves up with profits, never down)

Example ($100K account):

Starting balance: $100,000
Initial floor: $90,000

You make $5,000 profit → balance = $105,000
Trailing floor moves up: $95,000 (trailing $10K below high-water mark)

You give back $3,000 → balance = $102,000
Trailing floor stays at $95,000 (doesn't move down)

Funded phase:

• Max drawdown: 7% trailing
• Same trailing logic

CFD/Stocks: Static Drawdown (Real-Time)

Challenge phase:

• Max drawdown: 10% static
• Monitoring: Real-time

Funded phase:

• Max drawdown: 5% static
• Monitoring: Real-time

Key point: All The Trading Pit accounts monitor drawdown continuously. None use EOD rules.

MyFundedFutures Drawdown Rules: Universal EOD System

MyFundedFutures keeps it simple: every account uses end-of-day drawdown, checked only at 5 PM ET.

Evaluation Phase

Max drawdown: 6% EOD (checked at 5 PM ET only)

Example ($50K account):

Starting balance: $50,000
Daily close must be above: $47,000

Intraday allowance:

You can theoretically drop to $40,000 intraday (way below threshold) as long as you're back above $47,000 by 5 PM ET.

Funded Phase

Max drawdown: 4% EOD (checked at 5 PM ET only)

Example ($50K funded):

Starting balance: $50,000
Daily close must be above: $48,000

Tighter buffer: Once funded, your margin for error shrinks from 6% to 4%.

Does MyFundedFutures Have Daily Loss Limits?

No. MyFundedFutures does not enforce daily loss limits during evaluation or funded phases.

What this means:

You can lose $5,000 in one day on a $50K account (10%) and continue trading the next day—as long as your cumulative drawdown stays within the 6% (evaluation) or 4% (funded) EOD threshold.

Compare to other firms: Many prop firms have daily loss limits (e.g., "max 5% loss per day"). MyFundedFutures doesn't. Your only constraint is the cumulative EOD drawdown.

Head-to-Head Comparison Table

Real Trading Scenarios: How Each System Plays Out

Scenario 1: FOMC Announcement Volatility

Setup:

You're trading a $100K account. It's FOMC day. Jerome Powell announces rate decision at 2 PM ET.

Position: Long 5 contracts NQ (Nasdaq futures) at 16,500

Event: Powell's comments are hawkish. Market dumps 200 points in 10 minutes.

Your P&L: -$10,000 unrealized loss (5 contracts × $20/point × 200 points)

The Trading Pit (Futures Prime, 5% funded DD):

Starting balance: $100,000
Hard floor: $95,000
Current equity (2:10 PM): $90,000

Result: ❌ Account breached immediately. Position force-closed. You're out.

MyFundedFutures (4% funded DD):

Starting balance: $100,000
EOD floor: $96,000
Current equity (2:10 PM): $90,000 (unrealized)

Result: ✅ Still alive. Market recovers by 3 PM, you exit at breakeven. 5 PM close = $100,000. Account safe.

Winner: MyFundedFutures. EOD drawdown saved you.

Scenario 2: Overnight Gap Down

Setup:

You hold 3 ES contracts overnight (swing trade). You're up $2,500 going into the close.

Event: Overnight earnings report from a mega-cap tech stock misses badly. S&P futures gap down 80 points at open.

Your P&L: -$12,000 loss at 9:30 AM open (3 contracts × $50/point × 80 points)

The Trading Pit (Futures Prime, 5% funded DD, $100K):

Starting balance: $100,000
Hard floor: $95,000
Equity at 9:30 AM open: $88,000

Result: ❌ Account breached at market open. Gap down hit your real-time drawdown instantly.

MyFundedFutures (4% funded DD, $100K):

Starting balance: $100,000
EOD floor: $96,000
Equity at 9:30 AM open: $88,000

Result: ⚠️ Still alive but dangerous. You have until 5 PM to recover $8,000 to get back above $96,000. If you close at 4 PM with $95,500, you breach at 5 PM snapshot.

Winner: MyFundedFutures (gives you a chance to recover). The Trading Pit trader is already dead.

Scenario 3: Scalping with Tight Stops

Setup:

You scalp ES with 10-point stops. Average 20 trades/day. No single trade risks more than 0.3% of account.

Style: High frequency, tight risk management, close all positions by end of day.

The Trading Pit (Futures Prime, 5% funded DD, $100K):

Hard floor: $95,000

You're trading with strict stops. Unlikely to ever drop below $95,000 because each trade risks max $300.

Result: ✅ Real-time monitoring is fine. Your strategy naturally avoids big drawdowns.

MyFundedFutures (4% funded DD, $100K):

EOD floor: $96,000

You're not holding overnight. EOD drawdown is checked but irrelevant since you close flat daily.

Result: ✅ EOD monitoring doesn't add value. Tighter threshold (4% vs 5%) is actually a disadvantage.

Winner: The Trading Pit (larger drawdown buffer = 5% vs 4%).

Scenario 4: Revenge Trading After Big Loss

Setup:

You take a $3,000 loss in the morning on a bad setup. You're frustrated. You overtrade to "get it back."

Account: $50K funded

The Trading Pit (5% static DD):

Hard floor: $47,500
After morning loss: $47,000 equity
You're $500 away from breach.

What happens: You place another aggressive trade, lose $600. Account equity = $46,400.

Result: ❌ Account breached immediately. Real-time monitoring stops you from revenge trading further.

MyFundedFutures (4% EOD DD):

EOD floor: $48,000
After morning loss: $47,000 equity
You're $1,000 below EOD threshold but can keep trading.

What happens: You revenge trade all afternoon, dig deeper. End of day equity = $44,500.

Result: ❌ Account breached at 5 PM. But EOD rules allowed you to keep digging the hole.

Winner: The Trading Pit. Real-time monitoring protects you from yourself. EOD rules can be dangerous for undisciplined traders.

Pros and Cons Breakdown

The Trading Pit: Real-Time Drawdown

Pros:

• Forces discipline: Can't revenge trade after hitting threshold
• Prevents catastrophic losses: Hard stop protects account from total blowup
• Clear risk: You always know your exact floor (static accounts)
• Better for scalpers: Tight stops fit well with real-time monitoring
• Larger funded DD: 5% (Prime) vs 4% (MyFundedFutures)

Cons:

• No intraday flexibility: Volatile sessions can breach you even if you recover
• Punishes swing traders: Overnight gaps can instantly breach you
• News trading risk: FOMC/NFP/CPI volatility can kill account before you react
• Trailing DD confusion: Classic accounts have moving threshold that's harder to track

MyFundedFutures: End-of-Day Drawdown

Pros:

• Maximum intraday flexibility: Survive massive swings if you recover
• Perfect for swing traders: Overnight gaps don't breach you unless 5 PM close is bad
• News trading friendly: FOMC spikes won't kill account if you manage by close
• Simpler to understand: One daily snapshot, not continuous monitoring
• No daily loss limit: Can lose 10% in one day and keep trading next day

Cons:

• Tighter funded threshold: 4% vs The Trading Pit's 5% (Prime)
• Can enable bad habits: Lets you revenge trade deeper into the hole
• Less disciplined: No hard stop until 5 PM—can keep digging
• Evaluation DD tighter: 6% vs The Trading Pit's 7% (Prime) or 10% (Classic)

Which Drawdown System is "Better"? It Depends on Your Trading Style

MyFundedFutures EOD is Better For:

Swing traders holding overnight:

You need the freedom to hold positions through gaps and volatility without real-time monitoring killing your account.

News traders:

FOMC, NFP, CPI announcements cause huge intraday swings. EOD rules let you ride out volatility and manage by close.

Position traders:

If you hold futures positions for 2-5 days, intraday fluctuations are noise. EOD monitoring is perfect.

Aggressive risk-takers:

You want maximum flexibility to size up and take calculated risks that might dip intraday but work by close.

Multi-day strategies:

Any strategy where daily P&L variance is high but weekly/monthly equity curve is smooth benefits from EOD rules.

The Trading Pit Real-Time is Better For:

Scalpers with tight stops:

Your strategy never risks more than 1% per trade. Real-time monitoring doesn't hurt you, and the 5% buffer is actually larger than MyFundedFutures' 4%.

Day traders closing flat daily:

If you never hold overnight, EOD vs real-time makes no difference—except The Trading Pit gives you a larger buffer (5% vs 4%).

Risk-averse traders:

Real-time limits force you to stop trading after hitting threshold, preventing revenge trading spirals.

Beginners:

Hard intraday stops teach better risk management. EOD rules can let new traders dig themselves into holes.

Disciplined traders:

If you already use tight stops and never risk big drawdowns, The Trading Pit's real-time monitoring is a non-issue, and you benefit from the larger 5% funded threshold.

The Hidden Gotcha: Weekends and Rollover

MyFundedFutures Weekend Positions

Question: If you hold a position over the weekend and Sunday night futures open with a gap, when is drawdown checked?

Answer: Monday's 5 PM ET close.

Scenario:

Friday 5 PM close: $50,000 equity
Sunday 6 PM futures open: Gap down, unrealized loss = -$5,000, equity = $45,000
Monday trading: You close position for -$3,000 loss
Monday 5 PM close: $47,000 equity

Result: ✅ Safe. Your EOD floor is $48,000 (4% of $50K), but since you recovered to $47,000... wait, that's below $48,000.

Actually: ❌ Breached. You ended Monday below the 4% threshold.

The risk: Weekend gaps count against your Monday close. If you hold over weekends, you need to account for Sunday night open volatility.

The Trading Pit Weekend Positions

Question: Same scenario with real-time monitoring?

Answer: You breach at Sunday 6 PM futures open when equity drops below threshold.

Result: ❌ Breached immediately when Sunday futures open with gap (if gap is large enough).

Takeaway: Both firms punish weekend gap risk, but The Trading Pit breaches you instantly on Sunday night, while MyFundedFutures gives you Monday to recover.

Practical Tips for Each System

How to Trade The Trading Pit's Real-Time Drawdown

1. Never trade without a stop loss

Real-time monitoring means runaway losses breach you instantly. Always have stops in place before entering.

2. Calculate your max position size before trading

Know exactly how many contracts/lots you can trade before risking breach. Use the formula:

Max loss per trade = (Account Size × Max Drawdown %) ÷ 20 trades

Example: $100K account, 5% DD = $5K max loss ÷ 20 = $250 per trade max risk.

3. Avoid trading during major news if your account is near threshold

If you're down $4,000 on a $100K account (5% DD = $5K max), do NOT trade FOMC. One volatility spike breaches you.

4. Use trailing stops after profits

If you're up $5K on a trade, trail your stop to lock in profit. Don't let a winner turn into a loser that breaches you.

How to Trade MyFundedFutures' EOD Drawdown

1. Set a mental intraday limit even though there isn't one

Just because you can drop 15% intraday doesn't mean you should. Set your own intraday threshold (e.g., "if I'm down $4K, I stop for the day").

2. Focus on the 5 PM close—not tick-by-tick P&L

Check your positions an hour before close. If you're near the EOD threshold, manage risk aggressively to finish above it.

3. Don't rely on "I'll recover by close" every day

EOD rules give flexibility for rare bad days, not every day. If you're consistently down 5% intraday and recovering, you're gambling—not trading.

4. Be extra careful on Fridays

If you finish Friday below your EOD threshold, you breach—no weekend to recover. Always close Friday above your floor.

Frequently Asked Questions (FAQ)

Can I switch from real-time to EOD drawdown at The Trading Pit?

No. Drawdown type is determined by your account type (Prime = static, Classic = trailing). Both are real-time. The Trading Pit does not offer EOD drawdown.

Does MyFundedFutures check drawdown at any time other than 5 PM ET?

No. Only the 5 PM ET market close snapshot matters. You can theoretically drop 50% intraday without breach if you recover by close (though this is extremely risky).

What happens if I'm exactly at my drawdown threshold at 5 PM?

MyFundedFutures: If you close exactly at $48,000 on a $50K account (4% DD), you're safe. You must close below the threshold to breach.

Can I trade after 5 PM on MyFundedFutures?

Yes, you can trade overnight futures sessions. Your next EOD check is the following day at 5 PM ET.

Does The Trading Pit's trailing drawdown ever move down?

No. Trailing drawdown only moves up as you make profit. It never moves down when you lose money. It "trails" your high-water mark.

Which drawdown system is more common in the prop firm industry?

Real-time monitoring (like The Trading Pit) is more common. EOD drawdown (like MyFundedFutures) is rarer and considered more trader-friendly.

Can I hedge my way out of a drawdown breach?

Theoretically yes with MyFundedFutures (add an offsetting position by 5 PM). With The Trading Pit, you'd need to hedge instantly before the real-time system catches your breach—nearly impossible.

What if there's a platform outage and I can't close before 5 PM?

Contact support immediately. Both firms typically make exceptions for platform/broker failures, but you need documentation.

Final Verdict: Which Drawdown System Wins?

One-sentence summary: MyFundedFutures' end-of-day drawdown offers superior flexibility for swing traders and news traders, while The Trading Pit's real-time monitoring provides better risk protection and a larger funded drawdown buffer (5% vs 4%) for disciplined day traders.

Choose MyFundedFutures' EOD system if:

• You hold overnight positions regularly
• You trade around major news events (FOMC, NFP)
• You need intraday flexibility to manage volatile swings
• You're an experienced trader who can self-regulate
• Your strategy naturally has high intraday variance

Choose The Trading Pit's real-time system if:

• You're a scalper or day trader closing flat daily
• You want forced discipline (hard stops protect you)
• You value the larger 5% funded drawdown buffer
• You're newer to trading and need training wheels
• Your strategy uses tight stops that never risk big drawdowns

The truth about drawdown rules: Neither system is objectively "better." EOD gives freedom but requires discipline. Real-time enforces discipline but limits freedom. Choose based on your trading personality and strategy—not which sounds easier.

My take: If you're an undisciplined trader prone to revenge trading, The Trading Pit's real-time monitoring will save your account more often than MyFundedFutures' EOD rules. If you're a disciplined swing trader who hates being stopped out by intraday noise, MyFundedFutures' EOD system is perfect. Know yourself before choosing.

Your Next Steps

Full Breakdown: The Trading Pit Drawdown Rules by Account →

Start Trading with The Trading Pit →

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