How the FundedNext Stellar drawdown works
The Stellar Challenge caps total loss at 10% of your starting balance (a fixed floor at $90,000 on the $100,000 account) plus a 5% daily loss limit ($5,000). Neither trails: make profit and your buffer to the maximum-drawdown floor simply grows.
FundedNext runs several account models with different figures: the numbers here are the Stellar Challenge, so confirm which model your account actually uses before anchoring your risk to them.
A worked example
A $2,500 losing day sits comfortably inside the $5,000 daily cap, but three of them in a row puts you $7,500 down, only $2,500 from the static floor. The floor has not moved; your buffer has. Static drawdowns punish streaks, not single sessions.
Pacing the 8% target
Phase one asks for 8% ($8,000) across at least 5 days, an average of $1,600 a day over 5 days. Forcing it faster is what pushes traders into the 5% daily line, and a breach of either limit ends the evaluation outright.
- →Anchor risk to the 5% day and 10% total: fixed small per-trade risk keeps both comfortably out of reach.
- →Reach the 5-day minimum with steady green days rather than one outsized session.
Figures reflect a common FundedNext account at the time of writing. Firms revise rules often, so verify against the FundedNext site before relying on them.
Merlin's gauges derive from closed trades. Your firm watches live equity including open positions.
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