How it is calculated
The daily and total loss limits are the account size times each percentage. Dividing them by the money you risk per trade gives the number of full losses each limit allows.
Your edge per trade is win rate × R − loss rate, measured in R (one R is the amount you risk). With 45% wins at 1.5 R the edge is 0.45 × 1.5 − 0.55 = +0.125 R per trade.
The pass odds come from 3,000 simulated challenges. Each one draws wins and losses at your win rate until the profit stays above the target or the loss reaches the total limit.
The safe-risk line divides the daily limit by five, so five losses in a row on one day still leave you trading.
Losses to limit = ⌊Limit ÷ (Account × Risk %)⌋ · Edge (R) = Win% × R − (1 − Win%)
FAQ
What risk per trade should I use on a prop firm challenge?
Pick a risk where a normal losing streak cannot touch the daily limit. With a 5% daily limit, 1% risk lets you take five full losses in one day; 2% allows only two. Most traders who fail break the daily rule, not the total one.
Does the calculator handle trailing drawdown?
The limits here are static, measured from the starting balance. A trailing limit moves up with your highest balance, so the room shrinks after each winning run. If your firm trails, use your current room as the total loss figure.
Why are my pass odds low even with a positive edge?
A small edge needs many trades to show up, and every trade is a chance to hit the loss limit first. Lowering risk per trade usually raises the pass odds, because it gives the edge more trades to work.
Is a high win rate enough to pass?
No. A 70% win rate where wins are 0.4× the size of losses has a negative edge: 0.7 × 0.4 − 0.3 = −0.02 R per trade. Enter your real R to see the difference.









