Hey everyone,
I wanted to get your thoughts on drawdown limits, specifically for a $100k account.
Most prop firms seem to anchor their max drawdown around 10% ($10k), while others tighten the leash at 8% or even 5%. On the flip side, I've talked to traders who argue that anything less than 12% doesn't give you enough breathing room to manage risk properly when a strategy hits a rough patch.
What do you think is the absolute sweet spot? Do you prefer a tighter daily limit with a larger overall cushion, or do you think a flat 10% total drawdown is the fairest approach for this account size.
What are your experiences and what rules you look for when picking a firm!
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