Futures Prop Maximum Loss Limit (MLL) Explained (2026)
Quick answer: The Maximum Loss Limit (MLL) is the drawdown floor that closes a futures prop account if breached. Alpha Futures uses end-of-day trailing MLL on all plans — often called max loss or trailing drawdown (terminology varies by firm).
Part of our futures prop guide series. Start with What is a Futures Prop Firm? (2026 guide), then explore: futures prop evaluation, simulated futures funds, qualified futures trader, performance fee, how funded futures accounts work, are futures prop firms legit.
What is the Maximum Loss Limit (MLL)?
The Maximum Loss Limit (MLL) is the lowest your account equity can fall before the account closes. It is the futures prop equivalent of max drawdown, and traders often call it max loss or trailing drawdown. It applies during both the futures prop evaluation and on a Qualified Account, on simulated futures funds. For the full model, start with our What is a Futures Prop Firm? (2026 guide).
End-of-day trailing vs intraday trailing MLL
Alpha Futures uses end-of-day trailing MLL on all plans: your limit trails from the end-of-day high, not tick-by-tick during the session. Some competitors use intraday trailing, which moves the threshold immediately as unrealized profit rises — a very different risk profile under volatility. Read are futures prop firms legit and the help centre before choosing a firm.
Alpha Futures MLL by plan
- Zero — $1,000 / $2,000 / $3,000 on $25K / $50K / $100K.
- Advanced — $1,750 / $3,500 / $5,250 on $50K / $100K / $150K.
- Premium — $2,000 / $3,000 / $4,500 on $50K / $100K / $150K.
Premium's MLL does not slide to zero at your first performance fee — a common pain point at other firms. Always verify live numbers on the Maximum Loss Limit (MLL) help article.
How the MLL relates to passing and payouts
You pass an evaluation by reaching the profit target without breaching the MLL. As a qualified futures trader, staying inside the MLL is what keeps your account active so you can request performance fee. See how funded futures accounts work for the full journey.
Frequently Asked Questions
What is the Maximum Loss Limit (MLL) in futures prop trading?
The drawdown floor that closes your account if breached. It is the futures prop equivalent of max drawdown, often called max loss or trailing drawdown.
What is end-of-day trailing MLL?
Your loss limit trails from the end-of-day high rather than tick-by-tick during the session. Alpha Futures uses end-of-day trailing MLL on all plans.
How is end-of-day trailing MLL different from intraday trailing?
Intraday trailing moves the threshold immediately as unrealized profit rises, which can stop you out faster under volatility. End-of-day trailing only updates the floor at the session close.
What is the MLL on Alpha Futures plans?
Zero: $1,000 / $2,000 / $3,000 on $25K / $50K / $100K. Advanced: $1,750 / $3,500 / $5,250 on $50K / $100K / $150K. Premium: $2,000 / $3,000 / $4,500 on $50K / $100K / $150K. Verify on the help centre.
Does the MLL reset to zero after a performance fee?
On Alpha Futures Premium, the MLL does not slide to zero at your first performance fee. Behaviour varies by plan and firm — confirm on the help centre.
What happens if I breach the MLL?
The account closes. On an evaluation you would need a reset or a new evaluation; your personal savings beyond the fee are not at risk because trading is on simulated funds.
Ready to Start Your Evaluation?
Compare Alpha Futures evaluation plans — simulated accounts from $25K to $150K with a published 90% performance split. Confirm live sizes and rules on the help centre.
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Author: Alpha Futures Research Team · Updated: June 17, 2026 · Related: Futures prop guide · simulated futures funds · Evaluations
General information only, not financial advice. Simulated futures trading. Performance fees are performance-based; outcomes not guaranteed. Verify live rules on the Alpha Futures help centre before purchasing.
