QT Funded enforces a 3% daily loss limit and 6% overall maximum drawdown across every account size from $2.5K to $200K, applied through Phase 1, Phase 2, and the funded stage. A 5% consistency profit cap shapes how single days contribute to payout eligibility. Tighter than the 5% / 10% industry standard, the structure rewards measured compounding over fast equity racing.
Quick answer: How QT Funded drawdown works
- Daily loss limit: 3% of starting balance, applies every trading day
- Overall max drawdown: 6% of starting balance, trailing until lock
- Both lines apply on Phase 1, Phase 2, and the funded stage
- Drawdown is checked on equity, so open PnL counts
- 5% consistency profit cap shapes how the drawdown lines interact with payouts
- Available in 110+ trading countries; 6 jurisdictions excluded entirely
QT Funded, the prop arm of London-Canary-Wharf-based Quant Tekel, runs one of the tighter retail drawdown structures in the 2-step forex space. The headline numbers are 3% daily and 6% overall, applied across every account size from $2.5K to $200K. The exact mechanic on the overall line (intraday-trailing vs end-of-day-trailing) is not labelled explicitly in the public rulebook; verification in the firm help center is the right move before sizing into the larger accounts.
The tightness of the structure is a feature, not a bug. QT has built its reputation, Trustpilot 4.4 across 12,053 reviews and more than $16M reported paid out across 110+ countries, on a discipline-first framework that prices the firm's risk into the rule envelope rather than the payout split. Traders who can survive 3%/6% on the way to the 7%/5% phase targets are precisely the traders QT wants funding.
This article walks through the daily limit, the overall drawdown, how the consistency profit cap interacts with both, peer-firm comparisons, position-sizing math, common mistakes, and the platform-specific quirks that affect drawdown calculation.
Daily 3% loss limit
The daily loss limit at QT is 3% of starting balance, applied across Phase 1, Phase 2, and the funded stage. On a $25K account that line sits at $750, meaningfully tighter than the 5% daily standard most peer 2-step shops use. Breaching the daily limit ends the current phase immediately, and on the funded stage it closes the account regardless of overall MLL state.
Server-time reset
Daily limits at QT reset at the broker server's day rollover, which sits at 00:00 platform time (typically 22:00 or 23:00 UTC depending on broker config). Traders running into the rollover should treat the daily line as a hard ceiling on the active session, not a budget to consume; sessions that span the rollover boundary produce surprising calculations as a fresh daily window opens mid-trade.
What 3% daily punishes
The practical effect of a 3% daily is that QT punishes high-frequency stop-out behaviour. A trader who hits two consecutive 1.5% losing trades closes the day on the limit. The structure rewards a small number of well-sized entries rather than a large number of small probing positions, and the sizing math should reflect that bias.
Sizing against the daily
Position sizing against the daily 3%: anchor max-per-trade loss to one-quarter of the daily limit. On the $25K account that means $187.50 per trade, which gives the account four full stop-outs in a session before the daily line is hit. Tighter operators size at one-fifth or one-sixth, accepting a slower equity curve in exchange for more honest mistakes per day.
Daily 3% across account sizes
| Account size | Daily limit (3%) | Max per-trade (25% of daily) |
|---|---|---|
| $2.5K | $75 | $18.75 |
| $10K | $300 | $75 |
| $25K | $750 | $187.50 |
| $50K | $1,500 | $375 |
| $100K | $3,000 | $750 |
| $200K | $6,000 | $1,500 |
Overall 6% maximum drawdown
The overall maximum drawdown at QT is 6% of starting balance, $1,500 on a $25K account and $6,000 on a $100K. The mechanic is trailing on the way up until the line locks. Industry-standard practice for the EOD-trail family is to lock the line at the starting-balance level once equity has trailed it that high.
Trailing then locking
Before the line locks, every fresh equity high steps the drawdown line up by the same dollar amount. After the lock, the line behaves like a static rule for the remainder of the account. That two-phase behaviour is the structural reason QT pricing emphasises a measured compounding pace in its public communications; racing to peak equity on Phase 1 typically tightens the line faster than the cushion grows.
Interaction with the daily 3%
The 3% daily and 6% overall sit close enough together that two consecutive max-daily losses end the account on overall MLL as well as breaching the daily line. That means QT's effective lifespan tolerance for sustained losing streaks is two bad days, not the four or five days a 5% daily / 10% overall structure would permit.
Payout interaction
On the funded stage, the 6% overall line is also the line against which payout requests are measured. A trader who runs the account close to the line and then requests a payout typically sees that payout reduce the working balance back toward but not below the line. The payout flow does not free up additional drawdown room; the line is fixed in dollars at account creation.
Daily vs overall side by side
| Limit | Scope | Reset | On $25K |
|---|---|---|---|
| Daily 3% | One trading day | Server midnight | $750 |
| Overall 6% | Entire account | Never (account ends) | $1,500 |
Drawdown vs the 5% consistency profit cap
QT layers a 5% consistency profit cap on top of the drawdown lines. The cap means no single day's profit can exceed 5% of starting balance when measuring eligibility for payout. A trader who prints a $2,000 winning day on a $25K account (well above the $1,250 cap) sees the excess profit not count toward payout eligibility, even though it is real money in the balance.
Why consistency interacts with drawdown
The consistency cap is not a drawdown rule, but it interacts with drawdown management. Traders who size aggressively to hit phase targets quickly often print one or two large days that the consistency cap then disqualifies, meaning the same trader could have passed phase faster with smaller, more consistent days that fit inside the cap. The cap effectively defines the maximum useful size of a single session.
Funded-stage behaviour
On the funded stage, the consistency cap applies to payout eligibility rather than to account-life. Excess profit from a single day stays in the balance and adds to subsequent days' permitted profit caps, but the payout window only counts the within-cap portion. Verify the current consistency mechanic and any payout-stage variations in the QT help center.
Consistency cap in action
| Day's profit | $25K cap (5%) | Counts toward payout |
|---|---|---|
| $500 | $1,250 | Full $500 |
| $1,250 | $1,250 | Full $1,250 |
| $2,000 | $1,250 | Only $1,250 of $2,000 |
| $3,500 | $1,250 | Only $1,250 of $3,500 |
Managing drawdown across QT account sizes
Position sizing at QT should anchor to the daily 3% and verify against the overall 6%. The daily is the binding constraint on day-to-day operations; the overall is the binding constraint on the account's life. Sizing that respects both produces the equity curve QT's consistency rules and payout cadence reward.
- Anchor max-per-trade loss to 25% of the daily limit (0.75% of starting balance)
- Plan for four full stop-outs per session before the daily line is hit
- Limit single-day profit to roughly the 5% consistency cap; pushing above wastes effort
- Compound steadily through Phase 1; racing peak equity tightens the trailing line
- Treat the funded stage as a continuation of evaluation: same sizing, same rules
Account size selection
Account-size selection matters more at QT than at firms with looser drawdown lines. The $2.5K account has a $75 daily limit and $18.75 max-per-trade, which is below the minimum trade size on most platforms for major-pair forex. The $10K is the smallest size where standard sizing math works cleanly; the $25K is where most QT traders settle for the evaluation phase.
Peer-firm comparison
| Firm | Daily DD | Max DD | Consistency rule |
|---|---|---|---|
| QT Funded | 3% | 6% trailing/lock | 5% per-day cap on payout |
| FTMO Normal | 5% | 10% static | None on Phase, payout consistency |
| FundingPips 2 Step | 5% | 10% static | None |
| The 5%ers Bootcamp | 5% | 10% static or trailing | None |
| Alpha Capital Group | 4% | 6% trailing | 40% best day on payouts |
QT's 3% / 6% structure is the tightest in the peer set. Alpha Capital Group is closest with 4% / 6%, but its 40% best-day rule on payouts can bite harder on concentrated days than QT's 5% per-day cap. Traders comfortable with measured compounding find QT's envelope workable; traders used to FTMO's 5% / 10% need a deliberate gear-shift to size into the tighter rules.
Platform and country implications for drawdown
QT runs on MT5, cTrader, and TradeLocker. The platform choice has a second-order effect on drawdown management. MT5's hedging mode allows simultaneous long/short positions on the same instrument, which can mask net exposure and produce daily-limit breaches the trader did not anticipate. cTrader and TradeLocker default to netting, which is the safer setting for traders new to QT's tight envelope.
US trader routing
MT5 is unavailable to US residents. QT's restriction list (Cyprus, Iran, North Korea, Sudan, Syria, Russia) excludes six countries entirely, and US traders are routed to cTrader or TradeLocker as the fallback. Verify current country availability and platform routing in the QT help center before purchasing; the platform decision affects the daily-limit math through the netting/hedging distinction.
Swap and commission impact
On TradeLocker specifically, the drawdown calculation runs in real-time against equity inclusive of swap and commission. Traders running overnight swing positions should account for swap charges as a drawdown contributor; a 0.2% nightly swap on an oversized position can push a borderline account into a daily-limit breach without the trader placing a fresh trade.
Common mistakes that breach the lines
- Sizing for FTMO-style 5% daily and discovering QT's 3% is hit on the second loser
- Racing Phase 1 equity to peak and tightening the trailing line faster than buffer grows
- Holding through news without accounting for the wider spread cost against the daily
- Stacking multiple positions on correlated instruments and breaching net exposure
- Ignoring overnight swap on swing positions and waking up to a breach
- Misreading the 5% consistency cap as a drawdown rule rather than a payout-eligibility rule
Worked example: $25K Phase 1
A trader buys $25K Phase 1 with the 7% target ($1,750 needed). Daily limit is $750, overall is $1,500. With $187.50 max-per-trade and a 1:2 risk-reward, average winners produce $375. Expected pace at 50% win rate plus the edge: 1-2R per session. Phase 1 completion in 10-15 sessions of measured trading.
Breakdown by session
| Session | Net change | Cumulative balance | Daily DD remaining |
|---|---|---|---|
| 1 | +$200 | $25,200 | $750 |
| 2 | -$187.50 | $25,012.50 | $750 |
| 3 | +$375 | $25,387.50 | $750 |
| 4 | +$200 | $25,587.50 | $750 |
| 5 | -$150 | $25,437.50 | $750 |
| ...continuing at this pace | Cumulative +$1,750 | $26,750 | Phase 1 complete |
The slow-and-steady pace produces a 10-15 session pass that respects every rule line cleanly. Aggressive sizing for a 5-session pass typically trips the daily limit early or the consistency cap on a big day.
Cost in year one
First-year cost for a disciplined QT trader is mostly the original challenge fee plus possibly one reset. The tight rule envelope produces a higher reset rate for traders who do not adapt sizing; the BOGO50 promo (50% off plus free matching account) softens that cost on first purchase but does not change the underlying breach math.
| Trader profile | Resets in year 1 | Total cost | Outcome |
|---|---|---|---|
| Adapted sizing immediately | 0 | Single challenge fee | Funded inside 4-6 weeks |
| FTMO migrant adjusting | 1-2 | 1-3x challenge fee | Funded inside 3-4 months |
| Aggressive sizing learner | 2-4 | 3-5x challenge fee | Strategy review needed |
| BOGO50 with matched account | 0-1 | Half-price entry per pair | Doubled effective capital |
Quick reference checklist
- Anchor max-per-trade at 25% of daily limit (0.75% of starting balance)
- Plan for 4 full stop-outs per session before the daily line
- Keep single-day profit at or under the 5% consistency cap
- Avoid racing to peak equity on Phase 1; measured compounding produces the cleaner result
- Verify the overall-line lock trigger in the QT help center before sizing into larger accounts
- Use netting platforms (cTrader, TradeLocker) if new to the tight envelope
- Treat funded stage as continuation of evaluation; same sizing, same rules
Bottom line
QT Funded runs a tight 3% daily / 6% overall drawdown structure across every account size, layered with a 5% consistency profit cap that shapes how single days contribute to payout eligibility. The mechanic punishes high-frequency stop-out behaviour and rewards measured compounding, which is consistent with QT's discipline-first London-broker positioning. Sizing at one-quarter of the daily limit per trade, capping single-day profit near the 5% consistency line, and verifying the exact overall-line mechanic in the QT help center are the three operational habits that produce a payout-ready account at this firm.
Frequently Asked Questions
What is the QT Funded drawdown structure?
3% daily loss and 6% overall maximum drawdown, applied across every account size from $2.5K to $200K. Both lines run on Phase 1, Phase 2, and the funded stage. The overall line is trailing until it locks at the starting-balance threshold (verify exact lock trigger in the QT help center).
How tight is the daily 3% loss limit?
On a $25K account it sits at $750, meaningfully tighter than the 5% daily standard most peer 2-step shops use. Breaching the daily limit ends the current phase immediately, and on the funded stage it closes the account regardless of overall MLL state. The tight daily forces a small-number-of-quality-entries approach.
Is the QT overall drawdown static or trailing?
Trailing on the way up until the line locks at the starting-balance level, industry-standard for the end-of-day trailing family. The exact lock trigger is not explicitly labelled in the public rulebook; verify in the QT help center before sizing into larger accounts where the lock mechanic matters most.
What is the 5% consistency profit cap?
No single day's profit can exceed 5% of starting balance when measuring payout eligibility. Excess profit stays in the balance but does not count toward the payout window. The cap effectively defines the maximum useful size of a single trading session and rewards consistent compounding over single-session heroics.
How should I size positions to respect QT's drawdown?
Anchor max-per-trade loss to 25% of the daily limit, which is 0.75% of starting balance. On a $25K that gives $187.50 per trade and four full stop-outs in a session before the daily line is hit. Tighter operators size at 0.5% per trade for a six-stop cushion if drawdown nerves run high.
Does QT drawdown reset between phases?
Each phase runs on a separate account with its own drawdown lines reset to starting balance. The funded phase is a fresh account where the same 3%/6% ratios are applied to the funded balance, so a trader who passes $25K Phase 2 starts the funded stage with a $750 daily and $1,500 overall.
Can open PnL push me past the overall drawdown?
Yes. Drawdown checks run on equity, not just closed balance. A deep open loss can breach the 6% overall line before the trade is closed. Hard stops sized to total exposure, not just intended loss, are non-optional given the tight envelope QT operates. Set platform-side stops at the broker level when possible.
Are MT5 and TradeLocker treated the same for drawdown?
The drawdown math is the same, but MT5's hedging mode can mask net exposure and produce daily-limit breaches traders did not anticipate. cTrader and TradeLocker default to netting, which is the safer setting for traders new to QT's tight 3%/6% envelope.
What countries does QT Funded exclude?
Six jurisdictions are excluded entirely: Cyprus, Iran, North Korea, Sudan, Syria, and Russia. MT5 is separately unavailable to US residents, who are routed to cTrader or TradeLocker as the platform fallback. Verify current country availability in the QT help center because lists update with sanctions changes.
How does swap affect QT drawdown?
Drawdown calculation runs on equity inclusive of swap and commission. Overnight swing positions should treat swap as a drawdown contributor; a 0.2% nightly swap on an oversized position can push a borderline account into a daily-limit breach without the trader placing a fresh trade. Plan size with swap in the budget.
What is the BOGO50 promo and how does it affect drawdown?
BOGO50 is QT's 50%-off-plus-free-matching-account public promo. The free matching account runs on its own independent drawdown lines, meaning a trader can effectively double the working capital exposed to the 3%/6% envelope. The drawdown math per account is unchanged; only the position-sizing budget doubles across the pair if strategies are non-correlated.
What is the Phase 1 target at QT?
7% on Phase 1 and 5% on Phase 2, with the 5% consistency profit cap applied to single-day contributions. The 7% target is reachable in 2-3% weekly steps without forcing oversized trades against the 3% daily limit; measured compounding is the operational pattern QT rewards.
How does QT compare to FTMO on drawdown?
QT's 3%/6% is tighter than FTMO's 5%/10% on both lines. The daily is 40% smaller and the overall is 40% smaller. Traders migrating from FTMO need to deliberately reduce per-trade size to 60% of their FTMO sizing to keep the same number of stop-outs available per session. The phase targets are similar at 7-8%.
What happens if I breach the consistency cap?
Breaching the consistency cap does not end the account; it just disqualifies the excess profit from counting toward payout eligibility. The account continues trading normally, and the next day's contribution is calculated independently. A series of cap-respecting days produces a clean payout window even if one earlier day overshot the cap.
Can I use EAs on QT Funded?
Yes, with conditions. EAs are permitted as long as they do not run prohibited strategies (HFT-style microsecond entries, copy-trading across accounts, latency arbitrage). The 3% daily drawdown applies to EA-executed trades the same way it applies to manual trades; the EA must respect the position-sizing rules or breach risk is high.
Frequently Asked Questions
What is the QT Funded drawdown structure?
3% daily loss and 6% overall maximum drawdown, applied across every account size from $2.5K to $200K. Both lines run on Phase 1, Phase 2, and the funded stage. The overall line is trailing until it locks at the starting-balance threshold (verify exact lock trigger in the QT help center).
How tight is the daily 3% loss limit?
On a $25K account it sits at $750, meaningfully tighter than the 5% daily standard most peer 2-step shops use. Breaching the daily ends the current phase immediately, and on the funded stage it closes the account regardless of overall MLL state. The tight daily forces a small-number-of-quality-entries approach.
Is the QT overall drawdown static or trailing?
Trailing on the way up until the line locks at the starting-balance level, industry-standard for the end-of-day trailing family. The exact lock trigger is not explicitly labelled in the public rulebook; verify in the QT help center before sizing into larger accounts where the lock mechanic matters most.
What is the 5% consistency profit cap?
No single day's profit can exceed 5% of starting balance when measuring payout eligibility. Excess profit stays in the balance but does not count toward the payout window. The cap effectively defines the maximum useful size of a single session and rewards consistent compounding.
How should I size positions?
Anchor max-per-trade loss to 25% of the daily limit, which is 0.75% of starting balance. On a $25K that gives $187.50 per trade and four full stop-outs in a session before the daily line is hit. Tighter operators size at 0.5% per trade for a six-stop cushion if drawdown nerves run high.
Does QT drawdown reset between phases?
Each phase runs on a separate account with its own drawdown lines reset to starting balance. The funded phase is a fresh account where the same 3%/6% ratios are applied to the funded balance, so a trader who passes $25K Phase 2 starts the funded stage with a $750 daily and $1,500 overall.
Can open PnL push me past the overall drawdown?
Yes. Drawdown checks run on equity, not just closed balance. A deep open loss can breach the 6% overall line before the trade is closed. Hard stops sized to total exposure, not just intended loss, are non-optional given the tight envelope QT operates. Set broker-level stops when possible.
Are MT5 and TradeLocker treated the same for drawdown?
The drawdown math is the same, but MT5's hedging mode can mask net exposure and produce daily-limit breaches traders did not anticipate. cTrader and TradeLocker default to netting, which is the safer setting for traders new to QT's tight 3%/6% envelope.
What countries does QT Funded exclude?
Six jurisdictions excluded entirely: Cyprus, Iran, North Korea, Sudan, Syria, and Russia. MT5 is separately unavailable to US residents, who are routed to cTrader or TradeLocker as the platform fallback. Verify current country availability in the QT help center because lists update with sanctions changes.
How does swap affect QT drawdown?
Drawdown calculation runs on equity inclusive of swap and commission. Overnight swing positions should treat swap as a drawdown contributor; a 0.2% nightly swap on an oversized position can push a borderline account into a daily-limit breach without the trader placing a fresh trade. Plan size with swap in the budget.
What is the BOGO50 promo?
BOGO50 is QT's 50%-off-plus-free-matching-account public promo. The free matching account runs on its own independent drawdown lines, meaning a trader can effectively double the working capital exposed to the 3%/6% envelope. The drawdown math per account is unchanged; only the position-sizing budget doubles across the pair.
What is the Phase 1 target?
7% on Phase 1 and 5% on Phase 2, with the 5% consistency profit cap applied to single-day contributions. The 7% target is reachable in 2-3% weekly steps without forcing oversized trades against the 3% daily limit; measured compounding is the operational pattern QT rewards.
How does QT compare to FTMO?
QT's 3%/6% is tighter than FTMO's 5%/10% on both lines. The daily is 40% smaller and the overall is 40% smaller. Traders migrating from FTMO need to deliberately reduce per-trade size to 60% of their FTMO sizing to keep the same number of stop-outs available per session. Phase targets are similar at 7-8%.
What happens if I breach the consistency cap?
Breaching the cap does not end the account; it disqualifies the excess profit from counting toward payout eligibility. The account continues trading normally, and the next day's contribution is calculated independently. A series of cap-respecting days produces a clean payout window even if one earlier day overshot the cap.
Can I use EAs on QT Funded?
Yes, with conditions. EAs are permitted as long as they do not run prohibited strategies (HFT-style entries, copy-trading across accounts, latency arbitrage). The 3% daily drawdown applies to EA-executed trades the same way as manual trades; the EA must respect position-sizing rules or breach risk is high.