What Is the Daily Loss Limit at Ment Funding?
Every trader evaluating a prop firm has one question in mind: how much can I lose before I violate the rules? At Ment Funding, the daily loss limit is one of the most important parameters to manage during the evaluation phase. Breaking this limit will automatically fail your challenge, no matter how close you are to the profit target.
What Is a Daily Loss Limit?
The daily loss limit is the maximum amount you’re allowed to lose from the start of your trading day until the session ends. Once you hit or exceed this limit, your account is disqualified.
How Ment Funding Calculates Daily Loss Limit
Ment Funding uses a flat daily loss cap based on account size. For example:
- $25K account – $550 daily loss
- $50K account – $1,100 daily loss
- $100K account – $2,200 daily loss
This number includes open and closed trades. So if you’re down $900 on a $100K account and still have open positions, a sharp move could trigger the violation.
Why the Rule Exists
This rule protects the firm from erratic trading and teaches discipline. Consistent traders know when to step away. That’s why Ment Funding emphasizes risk management as much as profitability.
How to Monitor Your Daily Drawdown
- Use the built-in dashboard metrics
- Set custom alerts on your trading platform
- Manually log trades and drawdown in your journal
Knowing where you stand in real time can prevent accidental rule breaks.
Stop Trading Early When You’re Close
If you’re within 10% of your daily loss limit, stop for the day. Even if your setup looks good, the risk of blowing the account outweighs potential gain.
Apply a Personal Daily Loss Cap
Set your own internal loss limit tighter than the firm’s. For example, use $800 instead of $1,100. This buffer zone adds protection and helps build long-term consistency.
Example Scenario
A trader on a $50K account enters three losing trades, totaling -$950. They enter a fourth position hoping to recover and it slips further—now total losses hit -$1,150. That breach fails the challenge, even if the next trade would have been profitable.
Build a System Around It
Plan your risk per trade to ensure you never come close. On a $50K account with a $1,100 cap, limit your per-trade risk to $100–$150 max. This allows room for 2–3 failed trades without nearing the threshold.
Understanding the daily loss rule at Ment Funding and applying strict discipline around it will greatly increase your odds of passing the evaluation. Respect the limits and they’ll become part of your trading edge.