Estimate daily and maximum loss room, planned-trade headroom, and equal-loss capacity for a simulated prop-firm challenge.
STEP-BY-STEP
How to use this tool
- Copy the official starting balance and the balance used at the firm’s daily reset.
- Enter both current balance and current equity so open losses are not ignored.
- Enter the exact daily and maximum loss percentages from the specific plan.
- Enter the maximum planned loss for the next trade.
- Review both breach levels and use the smaller headroom value.
- Confirm the result against the firm dashboard and official rule wording before trading.
WORKED EXAMPLE
See the calculation in context
On a $50,000 account with a 5% daily loss limit and 10% maximum loss limit, the simple floors are $47,500 and $45,000. If current balance and equity remain $50,000, estimated headroom is limited by the $2,500 daily allowance.
Calculation method
This basic static model calculates a daily floor from start-of-day balance and a maximum-loss floor from starting balance. Remaining headroom uses the lower of current balance or equity, then selects the smaller remaining limit.
AVOID THESE ERRORS
Common mistakes
- Treating every drawdown rule as static
- Ignoring floating P&L, fees or commissions
- Using the wrong reset time or time zone
- Assuming profits always increase the loss threshold
- Using remaining headroom as a recommended risk size
- Applying one firm’s formula to another firm
FREQUENTLY ASKED
Questions and answers
Does this calculate trailing drawdown?
No. This first release is a clearly labeled basic static model. Trailing, end-of-day, intraday and high-water-mark rules require plan-specific logic.
Why use the lower of balance and equity?
It is a conservative estimate that avoids ignoring open losses, but the firm’s exact definition remains authoritative.
Can this guarantee I will not breach?
No. Only the firm’s official dashboard and binding rules determine a violation. Prices, fees, resets and open P&L can change the result.