FundedNext Challenge Rules
FundedNext offers two evaluation paths — the Stellar (two-phase) and the Express (one-phase, higher profit target). The Stellar is the more popular choice for most traders because the two-phase structure gives more time to demonstrate consistency.
5% Daily Loss
5% of starting balance per day. Based on end-of-day equity. On $100k account: $5,000 daily limit.
10% Max DD
Static drawdown from starting balance. $100k account floor = $90,000. Does not trail.
10% Profit
Make 10% on starting balance ($10,000 on $100k). Minimum 5 trading days required.
15% Share
You keep 15% of Phase 1 profits regardless of outcome. Unique to FundedNext.
5% Daily Loss
Same rule as Phase 1. 5% of original starting balance per day.
10% Max DD
Same static drawdown floor as Phase 1. The floor does not reset between phases.
5% Profit
Make 5% on starting balance. Minimum 5 trading days. Then funded at 90/10 split.
15% Share
15% of Phase 2 profits also paid out. Both phases reward profitable trading.
15% Profit Share During Evaluation
The practical implication for your journal: track evaluation P&L just as carefully as funded P&L. The 15% you earn during evaluation is real money, not a bonus that only matters if you pass. Some traders who trade well but fail the challenge due to a rule violation still walk away with meaningful evaluation payouts.
The 5% Daily Loss Rule — How It Calculates
End-of-Day Equity Calculation
FundedNext's daily loss limit is based on end-of-day equity, similar to FTMO. This means the daily limit resets based on the previous day's closing balance, not the original starting balance.
Example: You start a $100k account. Day 1 closes at $102,000. Your Day 2 daily loss limit is 5% of $102,000 = $5,100 (not $5,000). If Day 2 closes at $99,000, your Day 3 limit is 5% of $99,000 = $4,950.
This means your daily limit increases when you profit and decreases when you lose. On a bad run, your daily room shrinks — be aware of this when sizing positions after consecutive losing days. Log your end-of-day balance every session so you always know the next day's exact limit.
What to Track in Your Journal
End-of-day balance (every session)
This calculates tomorrow's daily loss limit. Log it before you close your platform. Missing even one entry makes your next-day limit uncertain.
Today's running P&L vs daily limit
Know before every trade how much room you have today. FundedNext's 5% is more generous than FTMO's 5% of original balance after profits build up — but you still need to track it actively.
Current balance vs starting balance drawdown floor
The 10% floor is fixed from day one. Current balance minus the floor = your overall drawdown buffer. When this falls below 3%, consider reducing position size significantly.
Phase profit target progress
Phase 1 target is 10%, Phase 2 is 5%. Track your progress toward each. As in other prop firm challenges, approaching the target is not the time to increase risk — it is the time to protect what you have built.
Trading days count
FundedNext requires minimum 5 trading days per phase. Log each day you execute at least one trade. Do not attempt to pass Phase 1 on day 4 even if you have hit the profit target.
Evaluation phase profit (for your 15% payout calculation)
At the end of each phase, FundedNext calculates 15% of your phase profit and pays it out. Log your phase P&L separately so you know exactly what to expect — and can verify the payout is correct.
Stellar vs Express — Which to Choose
- Lower per-phase profit targets (10% + 5%)
- More time to demonstrate consistency
- 15% profit share in both phases
- Best for traders with proven but moderate edge
- Higher profit target (25%) in single phase
- Faster path to funding if target is hit
- 15% profit share during the single phase
- Best for traders with aggressive, high-win-rate edges
Most traders should start with Stellar. The Express target of 25% requires either high leverage, exceptional win rate, or significant time — the risk of drawdown is higher. The Stellar structure rewards disciplined, consistent performance over weeks rather than a hero trade.
FundedNext Stellar Phase 1: 10% profit target, 5% max daily loss, 10% maximum overall drawdown, minimum 5 trading days. Phase 2: 5% profit target, same 5% daily loss and 10% overall drawdown limits, minimum 5 trading days.
Both phases use end-of-day equity for the daily loss calculation (the limit resets based on the previous day's closing balance, not the original starting balance). Once funded, you receive 90% of profits on accounts up to $300,000 in capital.