Breakout Rules 2026: Complete Trading Guide

Breakout runs a cryptocurrency-focused prop trading model with a rule set built around four account variants. The rules differ meaningfully between the 1-Step and 2-Step paths, and within the 1-Step family between Classic, Pro, and Turbo tiers. Understanding which rule layer applies to which plan is the most important step before paying for an evaluation.

This guide walks through every rule that affects pass-or-fail status: drawdown structure across all four account variants, daily loss limit mechanics, profit target percentages and how they are measured, leverage caps by asset class, weekend holding policy, news-event handling, and the prohibited-strategy list that catches algorithm-driven traders by surprise. Each section ends with the most common breach trigger for that rule layer.

Breakout account variants at a glance

Four account variants are currently active. They differ on drawdown type and tightness, on whether a daily loss limit applies, and on the profit target percentage. The summary table below shows the rule mix on a $100K account base for direct comparison.

The static drawdown on the 1-Step accounts behaves like a fixed floor. The trailing drawdown on the 2-Step account ratchets upward with new equity highs until it locks at the starting balance. The two structures require different mental models of risk.

Choosing between static and trailing

Static drawdown rewards traders who build profit early because the buffer remains constant. Trailing drawdown rewards traders who pace profit evenly because outsize early gains pull the line up and squeeze later session tolerance. Aligning the structure to your trading style is the single highest-leverage decision before purchase.

Drawdown rules explained

Drawdown enforcement is the most common reason Breakout accounts breach. The exact mechanic depends on the account variant. Static drawdown is checked on equity rather than realised balance, which means open losing positions can trigger breach even before they are closed. Trailing drawdown updates at fixed intervals and similarly checks equity rather than balance.

• Static drawdown: floor is set at purchase and never moves. Equity dipping below the floor at any moment triggers breach.
• Trailing drawdown: line trails the high-water mark by a fixed dollar amount. Updates at session close or in real time depending on configuration.
• Trailing lock: once the trailing line reaches the starting balance plus its buffer, the line locks and stops trailing further.
• Equity vs balance: drawdown is calculated on equity (open positions included), not on closed balance. Open losses count immediately.

The lock-at-starting-balance feature on the trailing account is a meaningful safety mechanism. Once you reach the lock point, the trailing drawdown effectively becomes static at that level and you can take a larger drawdown without breach. Reaching the lock point typically requires meeting the profit target and accumulating an additional buffer.

Daily loss limit on 2-Step accounts

The 2-Step account is the only Breakout variant that enforces a daily loss limit. The 1-Step accounts do not have a daily loss limit during evaluation or funded phase. On 2-Step, the DLL is typically 4% of starting balance, refreshed at the daily reset which is 5pm New York time.

Breaching the DLL is the most common single-session breach cause on the 2-Step. Because the limit is enforced on equity rather than balance, an open losing position can trigger DLL breach before the trader realises the loss. Always verify the limit against open-position mark-to-market, not just realised P&L.

How the daily reset works

The daily counter resets at 5pm New York time, which corresponds to the futures session close. Positions held across the reset count toward the next day's DLL from the moment the reset occurs, so a position open at 5pm carries its mark-to-market loss forward as the starting point of the new day's DLL window.

Profit target rules

The profit target on Breakout evaluations is the percentage gain you need to reach to qualify for funded status. The target varies by account variant and tier. The target is measured on closed-balance basis rather than equity, so floating gains do not count until the position is closed.

There is no time limit on most Breakout evaluations, which removes the pressure of a calendar deadline. The trade-off is that the static drawdown counts every day you trade, so a slow grind is feasible but the cumulative equity floor risk grows with time in market.

Leverage caps by asset

Leverage at Breakout is capped per asset class. The caps protect against single-position blow-ups that would otherwise overwhelm the drawdown buffer. The table below summarises the leverage cap structure.

Exceeding the leverage cap triggers an automatic position rejection at the platform level. The cap is enforced pre-trade rather than post-trade, so you cannot accidentally open an over-leveraged position. The cap can change with market conditions during high-volatility periods such as around major news or weekend gaps.

Weekend holding rules

Weekend holding policy varies by asset class because crypto markets trade through the weekend while traditional markets do not. The trader's responsibility is to know which assets in their book are subject to weekend gap risk and to size accordingly.

• Crypto positions: can be held over the weekend since markets remain open. Standard drawdown rules apply continuously.
• FX positions where offered: must be closed by Friday session end. Open FX positions auto-close at the Friday cutoff.
• Index and futures positions where offered: subject to product-specific weekend rules, typically must close before weekend gap risk.
• Cross-asset hedging across the weekend boundary is prohibited under standard rules.

Crypto-only traders have the most flexibility on weekend holding. Multi-asset traders should set platform alerts at the Friday cutoff to avoid auto-closure surprises. The cutoff time follows New York session-end conventions.

News trading and prohibited strategies

News trading is generally permitted at Breakout, unlike some peer firms that block trading around major economic releases. The permissive stance reflects the firm's crypto focus where news-driven volatility is harder to delineate. That said, several specific strategies are prohibited and trigger immediate breach if detected.

• Copy trading across multiple accounts you own: prohibited and detected through order-timing correlation.
• High-frequency arbitrage and latency exploitation: prohibited and detected through order-flow patterns.
• Coordinated trading between traders: prohibited and treated as a market-abuse violation.
• Wash trading and price manipulation: prohibited under standard market-abuse rules.
• Use of insider information or non-public material data: prohibited and grounds for permanent account closure.

The firm uses automated detection to flag suspicious patterns. The most common false-positive trigger is parallel manual trades on a similar setup across multiple accounts. If you operate multiple Breakout accounts, deliberately offset entries and exits to avoid the correlation flag.

Profit split and payout rules

The profit split on funded Breakout accounts is 80/20 in the trader's favour at the base level, with scaling to 90/10 on accounts that meet ongoing performance criteria. Payouts process on a bi-weekly cycle for most accounts, with a minimum balance threshold before requests can be submitted.

Payout requests are reviewed for consistency rule compliance even though Breakout does not publish a formal consistency percentage. The review is discretionary and typically holds payouts where the largest day's profit is disproportionately large relative to subsequent days.

Common breach causes ranked

Across the funded cohort, breaches fall into a few recurring categories. The ranking below reflects the typical breach distribution observed across Breakout's reporting on funded-account terminations.

• Drawdown overrun: by far the most common cause, especially on the 3% Turbo 1-Step where the buffer is tightest.
• Daily loss limit on 2-Step: open-position mark-to-market crossing the DLL line during the session.
• Copy-trading detection: parallel manual orders across multiple owned accounts triggering correlation flags.
• Leverage cap exceed attempts: usually intercepted pre-trade but persistent attempts can flag the account for review.
• Weekend holding violations: FX and index positions left open through the Friday cutoff on non-crypto accounts.

Most breaches are preventable with disciplined position sizing and platform-level alerts. The Turbo 1-Step's tight 3% buffer is the riskiest variant for inexperienced traders and the source of the highest breach rate.

Reset and refund policies

Breached evaluation accounts can be reset for a fee that varies by account variant. The reset preserves the same drawdown structure and starting balance, effectively giving the trader a fresh attempt at the same evaluation. Funded accounts that breach are terminated and cannot be reset, only repurchased as a fresh evaluation.

Refunds on unopened accounts are processed within a few business days. Refunds on accounts where any trading activity has occurred are not standard policy and depend on the firm's discretion. Always confirm refund eligibility with support before purchase if you suspect you may not be able to proceed with evaluation.

Account-variant breach-rate comparison

Breach rates across the four account variants reflect the rule-mix tightness. Tighter drawdown buffers and additional rule layers correlate with higher breach rates in the funded cohort. The relative comparison below uses observed breach distribution as the reference point, not absolute pass rates which depend on entry quality.

Choosing the variant with the lowest breach risk that still meets your funding-speed goals is the cleanest path. Most traders find Pro 1-Step the sweet spot, since Classic costs more for the wider buffer and Turbo's 3% buffer is too tight for most discretionary styles.

Cross-firm rule comparison

Breakout's rule structure sits between the strictest crypto-prop firms and the most permissive futures-prop firms. The summary below compares the core rule layers against three peer reference points.

The rule structure is broadly comparable across the three crypto-prop firms but with meaningful nuance. Breakout's static-drawdown 1-Step variants are friendlier to early profit-takers, while Tradeify Crypto's strict EOD trailing rewards steady pacing. Hyrotrader sits between the two on most rule layers but with a wider split range that can disadvantage smaller-balance accounts.

Position-sizing checklist by account variant

Mapping position size to drawdown buffer is the single highest-leverage skill on Breakout. The checklist below assigns a maximum per-trade risk for each variant on the $100K base, calculated as a fraction of the drawdown buffer to leave room for multiple losing trades before breach risk becomes acute.

• Classic 1-Step at 6% buffer: cap per-trade risk at $300 ($94K floor offers $6,000 of room, ten max losers before breach risk).
• Pro 1-Step at 5% buffer: cap per-trade risk at $250 ($95K floor, $5,000 of room, twenty smaller losers).
• Turbo 1-Step at 3% buffer: cap per-trade risk at $150 ($97K floor, $3,000 of room, requires very tight stops).
• Classic 2-Step at 8% trailing plus 4% DLL: cap per-trade risk at $400 with daily aggregate not exceeding $3,000 to stay clear of the DLL line.

These caps are floors not targets. Many funded traders run noticeably tighter risk per trade, particularly on Turbo where a single $300 loss already consumes 10% of the available drawdown buffer. The discipline of sizing well below the maximum allowed risk is what separates funded traders who keep accounts alive from those whose evaluation pass converts to a quick funded breach.

Edge cases that confuse first-time traders

Several scenarios sit at the boundary of the published rule set and confuse first-time Breakout traders. Recognising them in advance prevents surprise breaches and saves support-ticket time.

• Floating losses crossing drawdown: drawdown is equity-based not balance-based. An open losing position can breach even before being closed.
• Friday FX auto-close: open FX positions auto-close at the Friday cutoff. Auto-close fills can take a few pips of slippage that count toward the day's P&L.
• Reset timing during open positions: a reset paid for during open positions still flat-closes the account first. Reset after positions close to avoid forced exits.
• Multi-account leverage aggregation: leverage caps apply per account. Running parallel accounts on the same setup does not aggregate caps but can trigger the correlation flag.
• Crypto pair delisting: the firm periodically removes pairs from the eligible list. Open positions on a delisted pair are typically permitted to close but new entries are blocked.

Most edge cases stem from the equity-vs-balance distinction and from the platform-level enforcement that runs ahead of any manual review. When in doubt, close open positions before any administrative action, and always size the next trade based on current equity rather than recent balance.

The bottom line

Breakout's rule set is rule-mix heavy, with the most important decision being which account variant fits your style. The 1-Step Classic gives the widest static drawdown buffer at 6%, the 1-Step Turbo gives the tightest at 3% but a single phase, and the 2-Step Classic adds a daily loss limit and a trailing structure in exchange for a longer-running evaluation. Drawdown is enforced on equity not balance, leverage caps are pre-trade enforced, weekend holding is asset-class dependent, and copy-trading detection is automated. Breach-prevention comes down to choosing the right account variant for your style and respecting the drawdown buffer with conservative position sizing.

Frequently Asked Questions

Does Breakout have a consistency rule?

Breakout does not publish a formal consistency percentage like some peer firms, but payout reviews include a consistency check at the discretionary level. Payouts where the largest day's profit is disproportionately large relative to subsequent days can be held pending further trading days. The practical effect is a soft consistency requirement enforced at payout review rather than a hard percentage threshold.

Can you hold positions over the weekend at Breakout?

Yes for crypto positions since the underlying market trades through the weekend. FX positions where offered must close by the Friday session-end cutoff. Index and futures products are subject to product-specific weekend rules and typically must close before weekend gap risk. Cross-asset weekend hedging across the boundary is prohibited under standard rules.

What happens if you breach the daily loss limit at Breakout?

On the 2-Step account, breaching the DLL terminates the evaluation immediately. The 1-Step accounts do not have a DLL so the question only applies to 2-Step. Termination is final for that account, though a reset can be purchased to restart the same evaluation with the same starting balance and rule structure but a fresh trading history.

How does the Breakout daily loss limit reset?

The DLL counter resets at 5pm New York time, which corresponds to the futures session close. Positions held across the reset count toward the next day's DLL from the moment the reset occurs. A position open at 5pm carries its mark-to-market loss forward as the starting point of the new day's DLL window, which can shrink the available DLL buffer on day two.

Is news trading allowed on Breakout?

Yes. News trading is generally permitted at Breakout, unlike some peer firms that block trading around major economic releases. The permissive stance reflects the firm's crypto focus where news-driven volatility is harder to delineate. Standard prohibited-strategy rules still apply, particularly around insider information or coordinated manipulation around scheduled events.

Can you use trading bots or EAs on Breakout?

Yes within limits. Discretionary EA use is permitted. High-frequency arbitrage, latency-exploitation strategies, and bots that operate across multiple owned accounts in a copy-trading pattern are prohibited. The firm uses automated detection to flag suspicious order-flow patterns, so EAs operating within the spirit of single-account discretionary trading are generally accepted.

What is the profit split at Breakout?

The base profit split is 80/20 in the trader's favour. Scaling to 85/15 and 90/10 is available on accounts that meet ongoing performance criteria, with the higher split typically unlocking on $50K and larger accounts. Smaller accounts cap at 85/15. The split applies to payout requests, not to floating profit in the account.

How much does a Breakout evaluation cost?

Evaluation pricing varies by account variant and size. The smallest 1-Step Classic at $10K starts at the low end of the price range, while the largest $200K 2-Step costs noticeably more. Promotional codes and seasonal discounts run periodically and can reduce the effective cost meaningfully.

Is there a time limit on Breakout evaluations?

Most Breakout evaluations have no time limit, which removes the calendar deadline pressure common at peer firms. The trade-off is that the drawdown structure counts every day in market, so a slow grind is feasible but the cumulative equity floor risk grows with time. Some promotional variants may carry time-limit constraints, so verify the active rules at purchase.

Can you trade altcoins on Breakout?

Yes. Breakout supports a broad list of altcoins beyond the BTC and ETH majors. Leverage caps are tighter on mid-cap and low-cap altcoins to manage liquidity risk, typically 3x on mid-caps and 2x on low-caps. The exact pair list updates periodically as the firm adds and removes assets based on market conditions and liquidity profiles.

Does Breakout offer FX or indices?

Limited FX and index products are offered where supported by the broker network. The pair and product list is smaller than dedicated FX or futures prop firms. Leverage on offered FX majors runs up to 10x and on offered indices up to 20x. Weekend holding rules apply differently to these products versus crypto.

What is the difference between Classic and Pro 1-Step?

Classic 1-Step uses a 6% static drawdown and a 10% profit target. Pro 1-Step uses a tighter 5% static drawdown and a lower 8% profit target. Pro is cheaper per attempt but the tighter buffer increases breach risk. Choose Classic if you trade with wider stops or hold positions through volatility; choose Pro if you trade with tight stops and need the lower target to qualify faster.

What is the difference between Pro and Turbo 1-Step?

Pro 1-Step has a 5% static drawdown. Turbo 1-Step has a 3% static drawdown. Both have an 8% profit target. Turbo is the tightest variant in the lineup and the most prone to breach for inexperienced traders. Choose Turbo only if you trade with very disciplined position sizing and tight stops. Otherwise Pro offers a meaningful safety buffer at marginal additional cost.

How are payouts processed at Breakout?

Payouts process on a bi-weekly cycle for most funded accounts. Requests are submitted through the dashboard and reviewed for rule compliance before funds are released. Payment methods vary by region and typically include crypto rails, wire transfers, and select e-wallet options. Processing time after approval is typically 24 to 72 hours depending on the chosen payout method.

Can you reset a breached Breakout account?

Yes for evaluation accounts. A breached evaluation can be reset for a fee that preserves the same drawdown structure and starting balance, giving the trader a fresh attempt at the same evaluation with a clean trading history. Funded accounts that breach are terminated and cannot be reset, only repurchased as a fresh evaluation that must be re-passed before funded status returns.

What triggers a payout review hold at Breakout?

The most common payout review hold is a profit distribution that fails the discretionary consistency check, typically when the largest single day is disproportionately large relative to subsequent days. Other triggers include suspected copy-trading patterns across multiple owned accounts, leverage rule violations during the payout cycle, and KYC documentation issues. Most holds resolve within a few business days once the trader provides any requested context.