Why Risk Management Matters at Ment Funding
Ment Funding is a popular prop firm offering traders the chance to manage large accounts and earn real profits—but only if they can prove their consistency and discipline. With tight daily loss limits and evaluation criteria, risk management isn’t just a good habit at Ment Funding—it’s a survival skill. Many traders blow challenges not due to strategy failure but due to emotional mistakes and poor risk control. This guide outlines practical steps to help traders manage risk effectively while staying compliant with Ment Funding’s rules.
Understand the Daily and Total Drawdown Rules
Ment Funding enforces strict risk parameters, including daily and overall drawdown limits. Violating either of these can lead to disqualification, even if you’re profitable overall. Here’s how to avoid it:
- Daily Drawdown: Set a fixed daily stop amount (e.g., 2%–3% of your account).
- Total Drawdown: Know your max loss across the challenge and never come close to it. Always calculate how many trades you can lose before nearing the limit.
Many traders at Ment Funding find success by stopping for the day after two losing trades or a 2% drop, whichever comes first.
Adopt a Fixed Risk per Trade Approach
Risking a fixed percentage per trade helps preserve capital and avoids emotional decision-making. A smart rule is to never risk more than 1%–1.5% of your account balance on any single trade. On a $50,000 account, this means $500–$750 of risk per setup. This rule reduces the chance of major damage if a trade goes against you.
Use Stop-Loss Orders Without Exception
Manual exits are often emotion-driven and lead to unnecessary losses. Always use a pre-determined stop-loss level, and never move it wider during a trade. Automated stop-losses protect your account from rapid market moves and help enforce discipline.
Keep a Detailed Trading Journal
Every serious trader should maintain a journal. Log every trade you take, including the reason for entry, the setup, stop-loss size, and outcome. Note any mistakes, such as taking trades outside your plan or risking too much. Over time, you’ll see patterns emerge—and you’ll know exactly what to correct.
Set Daily Profit Targets and Walk Away
Just as you cap your daily loss, set a daily profit goal—then stop trading once it’s hit. This prevents overtrading and protects profits from emotional reversals. For instance, if you earn 2% on the day, lock it in and close your charts.
Limit the Number of Trades Per Day
More trades doesn’t mean more profits. Overtrading increases exposure to risk and fatigue. Ment Funding evaluations often go sideways for traders who can’t control their activity. Try limiting yourself to 3–5 trades per day with only the best setups.
Stay Away from News Events
High-impact news like NFP or FOMC announcements can cause rapid price swings. These often trigger stop-losses or cause slippage. At Ment Funding, protecting capital during these events is crucial. Either close trades before news releases or reduce your risk significantly during these windows.
Reassess Weekly Performance
Every week, take 30 minutes to review your journal and metrics. Ask yourself:
- Did I follow my plan?
- Were my risks consistent?
- What mistakes did I repeat?
- Am I improving my trade quality?
This ongoing feedback loop keeps your risk management aligned with your goals and Ment Funding’s evaluation standards.
Use a Risk Calculator for Precision
Risk calculators help eliminate guesswork. By inputting your stop-loss size, account balance, and desired risk percentage, you can calculate exactly how many contracts or lots to trade. Many traders use tools like MyFxBook’s Position Size Calculator or TradingView scripts.
Don’t Let Emotions Guide Your Trades
Fear, greed, and frustration are the biggest enemies of risk control. When trading with Ment Funding, emotional decision-making can end your challenge quickly. Build routines that calm your mindset: pre-market meditation, post-trade journaling, and walking away after a winning session all help reinforce discipline.
Final Thoughts
Risk management isn’t optional at Ment Funding—it’s built into the structure of their evaluations and funded accounts. Traders who approach the process with a fixed system, daily limits, and strong discipline are far more likely to succeed. By following the practices above and adapting them to your unique strategy, you’ll have a much better chance at passing your evaluation and securing a long-term future as a funded trader with Ment Funding.