Does SFX Funded's Maximum Total Loss include unrealized losses from open positions?

Yes, the 6% maximum total loss includes both realized losses from closed trades and unrealized losses from open positions. Your account equity must never drop more than 6% below the starting balance, regardless of whether losses are closed or still floating.

What happens if I breach the Maximum Total Loss?

Your account is immediately terminated and you fail the challenge or lose your funded account status. There are no warnings or grace periods - once your equity hits the 6% drawdown threshold, your trading access is revoked permanently for that account.

Does the Maximum Total Loss reset if my account becomes profitable?

No, the 6% maximum total loss never resets and is always calculated from your original starting balance. Even if your account grows significantly, you still cannot have more than 6% total drawdown from the initial balance at any point.

Is the Maximum Total Loss calculated from account balance or equity?

The rule is calculated from your account equity, which includes unrealized profits and losses from open positions. The 6% limit is measured against your original starting balance, but your current equity (balance plus floating P&L) determines if you've breached the rule.

Updated 2026-03-08

SFX Funded Maximum Total Loss Rule Explained

SFX Funded

Quick Answer

SFX Funded's Maximum Total Loss rule allows a maximum 6% drawdown from the initial account balance.

The rule is calculated as 6% of your starting account balance and includes both closed losses and unrealized losses from open positions. If your account equity drops to or below this threshold at any time, your account will be immediately terminated and you'll fail the challenge or lose your funded account.

Key Rule Details

Limit

Dollar Value ($80,000)

$4,800

Basis

Initial balance

Resets

Never (static)

Breach

Account terminated

Calculation Example

Account Size: $80,000 — Maximum Total Loss: $4,800

Account Size	$80,000
Maximum Total Loss Limit	$4,800
Scenario: Closed P&L	$-1,344
Scenario: Floating P&L	$-2,496
Total Exposure	$-3,840
Remaining Buffer	$960

Limit used:80%

Common Mistakes

Ignoring Unrealized Losses

Many traders think only closed trades count toward the 6% limit, but open positions with floating losses also contribute to drawdown. On a $100,000 account, if you have $4,000 in closed losses and $3,000 in unrealized losses on open trades, you've already breached the $6,000 maximum total loss limit.

Calculating From Current Balance

Traders mistakenly calculate 6% from their current account balance instead of the original starting balance. If your $50,000 account grows to $55,000, the maximum loss remains $3,000 from the original balance, not $3,300 from the new balance.

Weekend Gap Risk

Holding positions over weekends without considering gap risk can instantly breach the 6% rule when markets reopen. A trader with $2,000 existing drawdown on a $50,000 account only has $1,000 buffer remaining, but a weekend gap could easily create $2,000+ additional losses.

Doubling Down After Losses

After experiencing losses, traders often increase position sizes to recover quickly, pushing them closer to the 6% limit. This revenge trading mentality accelerates drawdown and leaves no room for normal market volatility to play out without breaching the rule.

Protection Strategies

Set Personal 4% Maximum Drawdown Buffer

Create your own maximum loss limit at 4% instead of the full 6% allowed by SFX Funded. This 2% buffer protects against unexpected market moves and gives you room to manage positions without immediate termination risk. On a $100,000 account, stop trading at $4,000 loss instead of $6,000.

Use 1% Risk Per Trade Maximum

Limit each trade to risk no more than 1% of your account balance, allowing for 4-6 losing trades before approaching your personal drawdown limit. This position sizing ensures that even a streak of losses won't immediately threaten your account survival.

Set Equity Alerts at 4.5% Drawdown

Configure your trading platform or phone to alert you when account equity drops to 4.5% drawdown from starting balance. This early warning system gives you time to close positions or reduce risk before reaching the fatal 6% threshold.

Avoid Trading During High Impact News

Skip trading during major economic announcements and volatile market sessions when price movements can quickly exceed normal stop-loss levels. The increased volatility during these periods can cause rapid drawdown that pushes accounts past the 6% limit within minutes.

Related Rules

Maximum Daily Loss

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Payout Split & Schedule

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on SFX Funded's official website before purchasing a challenge. Updated 2026-03-08.