Prop trading opens up opportunities for you to trade with significant capital without risking your personal funds. One major benefit is the security of knowing you’re not risking everything—your account is protected. With SiegFund, you’re trading with authorized PE funds and licensed brokers, receiving an 80% profit split on successful trades. However, to keep your funded account active and secure, disciplined risk management is essential.

Key Prop Firm Risk Management Rules to Follow

1. Daily Loss Limit

SiegFund sets a daily loss limit to protect your account from significant losses within a single day. For the 1 Step Express, the daily limit loss is 3%, and for the 2 Step Standard and 2 Step Flex, it’s set at 5%. Breaching this limit can jeopardize your funded status, so it’s crucial to monitor daily losses and step back if you’re nearing the cap. This rule is in place to prevent overtrading and minimize the impulse to “win back” losses, which often leads to further mistakes.

2. Maximum Drawdown

Firms also impose a maximum drawdown—a total loss threshold that, if crossed, can result in losing your funded status. SiegFund’s 1 Step Express account has a trailing maximum drawdown of 6%, meaning it adjusts as your account balance increases. For the 2 Step Standard/Flex, the maximum drawdown is 10%. After a payout, this drawdown limit may lock at your starting balance, meaning any losses afterward directly impact your core account balance.

Practical Tips to Protect Your Funded Account

1. Use a Stop-Loss (SL) on Every Trade

Even though SiegFund doesn’t require mandatory stop-losses, setting them on each trade is essential for responsible risk management. Stop-loss orders help limit potential losses, learning to set effective SLs in platforms like MetaTrader can make a difference in controlling losses. Learn how to set a stop-loss in MetaTrader

2. Follow the 2% Rule

The 2% rule is simple but effective: if you lose 2% of your account balance in a day, stop trading. This pause prevents emotional decisions and “revenge” trading, which can lead to greater losses. Following this rule gives you time to assess your approach and re-enter the market with a clear mind, helping you protect your funded status.

3. Stay Alert to Drawdown Limits After Payouts

Once you request a payout from SiegFund, the maximum drawdown locks in at the new balance, meaning any subsequent losses will reduce your available buffer. Keeping this in mind is crucial to avoid accidentally breaching this threshold and risking your account security. After payouts, be extra cautious with trades to maintain your funded status.

In Summary

Prop trading with SiegFund allows you to develop as a trader while limiting personal financial risk. By respecting SiegFund’s daily loss limits, setting stop-losses on each trade, following the 2% rule, and staying mindful of your drawdown after payouts, you can protect your funded account and build trust with the firm.  

Ready to take on the evaluation with SiegFund? Start integrating these risk management practices into your trading to maintain a steady, funded account.