TX3 Funding uses a 6% end-of-day trailing drawdown that converts to a static floor once your account reaches +6% gain — meaning the floor locks at the original starting balance after that point. A separate 3% daily loss limit is calculated at 5pm EST using the higher of starting balance or current equity. The structure suits traders who can clear the +6% threshold quickly and then operate on a stable floor.
- 6% EOD-trail until account reaches +6% gain, then locks at starting balance
- Daily 3% loss limit at 5pm EST — higher of starting balance or current equity
- Lock activates on 5pm EST close at or above +6%, not on intraday tags
- Once locked, all accumulated profit becomes fully protected cushion
- Same structure across FX and Futures verticals (futures-specific verify firm help center)
- MetaTrader 5 only — platform stack is FX-friendly
What TX3 Funding Drawdown Is
TX3 Funding drawdown is a hybrid 6% trailing structure with a built-in lock. Until your account reaches +6% gain from starting balance, the maximum loss limit trails your closing equity by 6%. The moment you hit +6%, the trailing stops and the floor locks at the original starting balance — converting effectively to a static drawdown for the rest of the account's life.
This is a notably trader-friendly variant of EOD-trail. Most trailing models continue to trail indefinitely, narrowing your operational margin as you produce profit. TX3's lock-at-+6% rewards traders who push past the threshold by giving them a stable floor at original capital — meaning all subsequent profit is fully protected by a hard zero-loss-from-deposit floor.
Compared with industry-standard EOD-trail models, this is a structural improvement. Apex, MyFundedFutures, and most US futures firms trail indefinitely. TX3 puts a ceiling on how much your floor can move and rewards you for crossing that ceiling. The first +6% is the only stretch where you bear the trail; after that, the structure converts to the most trader-friendly form possible.
TX3 runs both FX and Futures verticals on the same payout architecture. The 6% trailing-with-lock is documented for the FX side. The futures-specific drawdown variant has not been separately verified in public TX3 materials — for futures-account-specific behavior verify firm help center before sizing.
How the EOD Trail Works (Pre-Lock)
- Calculated at 5pm EST daily
- Uses the higher of starting balance or current equity as reference
- Floor trails 6% below that reference until +6% gain reached
- Once +6% reached: floor locks at starting balance
- Lock is permanent — does not unwind on later drawdowns
Example on a $50,000 account: starting balance $50,000, initial floor $47,000. Day 1 closes at $51,000 — floor trails to $47,940 (6% below the new $51,000 high). Day 5 closes at $53,000, which is +6%. From this point the floor LOCKS at $50,000 (original starting balance) and stops trailing further regardless of equity highs.
Pre-lock, the trail behavior is identical to a normal EOD-trail structure. Floor moves up only on new closing highs, never moves down, and is computed against the higher reference between starting balance and current equity. Standard EOD-trail discipline applies — manage late-session give-back, prefer flat-into-close where possible.
The 3% Daily Loss Limit
Context worth restating: Dual-vertical FX + Futures prop firm with 6% EOD-trail that locks at +6% gain. The rule set described above sits inside that broader architecture and inherits its structural advantages and limitations. The 100% first-$10K split tranche is the most generous opening structure in dual-vertical prop trading, which is the dimension that matters most when comparing TX3, Apex, or other competitors against this firm.
Separately from the cumulative 6% drawdown, TX3 applies a 3% daily loss limit. This is calculated using the higher of starting balance or current equity at 5pm EST. On a $50,000 account that starts at $52,000 equity for the day, the daily floor is $52,000 × 0.97 = $50,440 — a $1,560 risk room for that session. If today's closing equity drops below $50,440 the daily rule is breached, even if the cumulative 6% floor is untouched.
- Daily check: 5pm EST
- Reference: higher of starting balance or current equity
- Floor: 3% below that reference for the day
- Triggers independently of the 6% max drawdown
- Uses closing equity at the 5pm EST snapshot, not intraday wicks
The daily limit using the higher of starting balance or current equity is genuinely favorable to the trader. Most firms anchor the daily limit only at starting balance, which means accumulating profit does not extend daily risk room. TX3 lets the daily limit float upward with equity, giving profitable accounts more breathing room session-by-session.
Why the Lock-at-+6% Matters
Industry-standard EOD-trail models squeeze profitable traders. The more profit you make, the higher the floor climbs, the smaller your operational room becomes. TX3 inverts this. The first +6% is the only stretch where you bear the trail; after that, the floor is anchored at original capital and your accumulated profit becomes a fully protected cushion.
| Profit Level | TX3 Floor Behavior | Standard EOD-Trail Floor |
|---|---|---|
| +3% | Trailing at -3% of high | Trailing at -6% of high |
| +6% (lock) | Locks at starting balance | Trailing at -6% of high |
| +10% | Static at starting balance | Trailing at -6% of high |
| +20% | Static at starting balance | Trailing at -6% of high |
A trader at $58,000 equity on a $50K account has $8,000 of risk room above the $50,000 locked floor — more breathing room than continuously-trailing competitors offer. That cushion is the genuine reward for crossing the +6% threshold and is the structural reason TX3 sits in a more trader-friendly position than most EOD-trail peers.
Worked Example: 1-Phase $50K
Stress-test the rule set against your worst historical session before going live. Identify the largest adverse intraday excursion you have had in the last 60 trading days, then check whether that move would have breached the daily or cumulative floor on the eval product you intend to take. If the answer is yes, your sizing is too aggressive for the structure.
Day 1: start $50,000, floor $47,000. Close $50,800. Floor trails to $47,752. Day 4: close $52,400. Floor trails to $49,256. Day 7: close $53,100 — now +6.2% gain. Lock activates. Floor permanently at $50,000.
Day 10: equity hits $55,000 intraday, closes $54,200. Floor stays at $50,000. Day 12: drawdown to $51,500 close. Floor still $50,000 — no breach, $1,500 cushion above the lock. Day 14: hit profit target of $55,000 (10% gain). Move to funded status.
| Day | Close | Floor | Status |
|---|---|---|---|
| 1 | $50,800 | $47,752 | Trailing |
| 4 | $52,400 | $49,256 | Trailing |
| 7 | $53,100 | $50,000 | Locked at +6% |
| 10 | $54,200 | $50,000 | Locked (static) |
| 12 | $51,500 | $50,000 | Locked, $1,500 cushion |
| 14 | $55,000 | $50,000 | Target hit |
Notice day 12 — equity dropped from $54,200 to $51,500, a $2,700 drawdown. Under a continuing EOD-trail, the floor would have followed the previous high and the trader would have been close to a breach. Under the TX3 lock, the floor stayed at $50,000 and the trader had $1,500 of comfortable cushion above it.
Drawdown by Plan
- 1-Phase Challenge $50K Starter: 6% trailing with lock at +6%, 3% daily, $70/month
- 2-Phase Standard: same 6%/3% structure, one-time fee, 10% profit target
- Pro 1-Phase: same structure on a single-stage path with one-time fee
- Instant Funding (dual model): structure varies — confirm in dashboard
The core 6%/3%-with-lock structure is uniform across the main eval products. Pricing model differs (Starter monthly versus Pro/Standard one-time), but the rule geometry is identical. This makes scaling between plans straightforward — you only have to learn the rule set once.
Common Breach Mistakes
Behavioral compliance with drawdown rules is harder than computational compliance. Most traders can do the math; few maintain discipline under live P&L pressure. Build pre-trade rituals — written checklists, visible floor numbers, hard daily stop alerts — that remove the option to override the rule when emotions are high. The infrastructure matters more than the willpower.
- Sizing aggressively before the +6% lock activates — the trailing phase is the dangerous one
- Forgetting the daily 3% rule when the cumulative 6% feels comfortable
- Trading through the 5pm EST window — closing positions in the snapshot window catches FX rollover spreads
- Treating the lock-at-+6% as automatic — it activates on a 5pm EST close at or above +6%, not on intraday tags
- Assuming futures-vertical drawdown matches FX behavior without confirmation
The most common subtle breach is misreading the lock trigger. A trader who hits +6.5% intraday but closes the day at +5.8% has not activated the lock — the floor is still trailing. The next day's open uses the trailed floor, not the starting balance. Only the 5pm EST close determines whether the lock fires.
Practical Operating Considerations
Position sizing under any drawdown rule starts with the per-trade risk math. Map your typical stop distance into dollars, count how many of those losing trades fit inside the floor, and never plan to use more than half of the available room on any single session. This single discipline prevents the majority of avoidable breaches across every prop firm.
The interaction between drawdown mechanic and trader psychology is real. Traders who internalize the rule set tend to outperform traders who treat the floor as an abstract number. Build the floor into your visible workflow — a banner in your trading software, a sticky note on your monitor, a daily journal entry — anywhere the number stays in front of you across the session.
Backtest your strategy against the specific drawdown structure before deploying real capital. A strategy with great expectancy on a static-drawdown firm may produce vastly different results on a trailing-drawdown firm because the rule interacts with your trade-by-trade P&L distribution. The mechanic is part of the edge calculation, not separate from it.
Document the specific rule numbers in your trade plan template. The MLL dollar amount, the daily limit, the snapshot time, the lock or no-lock behavior — all should be visible at the top of every session journal entry. Traders who skip this step often discover months later that they were operating on an outdated assumption about the rule set.
| Risk Element | Beginner Approach | Experienced Approach |
|---|---|---|
| Per-trade risk | 0.5-1% of starting balance | 1-2% with documented edge |
| Daily stop | 1/4 of cushion | 1/3 of cushion |
| Session length | 1-2 hours focused | Full session with breaks |
| Position count | 1-2 setups daily | 3-5 setups daily |
| Recovery from loss | Stop for the day | Smaller next setup |
Additional Operating Notes
The mental model that helps most beginners is to treat the drawdown rule as a non-negotiable upstream constraint, not an optimization target. The trader who asks 'how close can I get to the floor without breaching' tends to breach. The trader who asks 'how much room above the floor do I need to operate calmly' tends to fund the account. Frame the rule defensively, not offensively.
Volatility regime matters. The same rule set behaves differently in a low-VIX environment versus a high-VIX environment. Adverse intraday excursions during VIX-30 days are typically twice the size of VIX-15 days. Adjust per-trade sizing downward in elevated-vol regimes — many breaches happen because traders fail to scale down when volatility doubles.
Position correlation creates hidden risk under any drawdown rule. A trader long MES and long MNQ has effectively doubled directional exposure to the same factor. The drawdown rule reads total account equity, so a single sharp tech-equity move can take both correlated positions adverse simultaneously. Treat correlated positions as a single risk unit when sizing.
Recovery from a near-miss matters as much as avoiding the near-miss. After a session that closes within 25% of the daily floor, scale down position size by half for the next 2-3 sessions and rebuild psychological capital. Traders who refuse to scale down after near-misses produce repeated near-misses, eventually one of which becomes a breach. The data is clear on this pattern.
Case Study: A Typical Funded Month
Consider a trader who funded the smallest entry account at the firm and trades two-to-three setups per session across a typical month. The month begins with conservative sizing while the trader confirms platform fills and order routing. By week two, sizing increases modestly as the trader builds comfort with the rule set. Week three produces the largest single-day profit of the month — typically on a news session or a trend day. Week four consolidates with smaller sizes to protect the cumulative gain.
The pattern repeats across thousands of funded traders at every firm. The first week is education, the second week is calibration, the third week is conviction, and the fourth week is consolidation. Traders who skip the first two weeks and push for conviction-sized trades in week one produce wildly variable outcomes. Traders who follow the four-week arc produce predictable funded results.
Map your own month against this rhythm. If you find yourself sizing up in week one, scale back. If you find yourself sizing down in week four after a losing trade, scale back further until the loss is processed. The drawdown rule will respect your discipline regardless of whether the market does.
| Week | Typical Behavior | Sizing | Goal |
|---|---|---|---|
| 1 | Education / calibration | 1 micro contract | Confirm fills |
| 2 | Build conviction | 1-2 micros | Test edge |
| 3 | Conviction sizing | 2-3 micros | Capture meaningful day |
| 4 | Consolidation | 1-2 micros | Protect cumulative |
Behavioral consistency matters as much as numerical compliance. Traders who execute the same routine across every session — same prep, same instrument focus, same risk per trade — produce more predictable outcomes than traders with great strategies but variable execution. The infrastructure of consistency compounds across the funded-account lifecycle and is harder to fake than backtested edge.
When the rule set and your strategy interact in unexpected ways, document the observation immediately. Many traders discover an edge case at 2pm on a Friday and forget the detail by Monday morning, then re-discover it during a costly mistake weeks later. A simple text file with edge case notes — labeled with the date discovered and the specific rule context — saves repeated learning of the same lesson.
Risk-of-ruin math is the most under-used tool in prop firm trading. Map your per-trade risk, win rate, and average winner/loser size into a simple Kelly or risk-of-ruin calculation. The output usually surprises traders into sizing down. Even strong strategies face meaningful ruin probability when sized aggressively against tight drawdown rules.
Bottom Line
Platform-side, MetaTrader 5 across both FX and Futures verticals. Platform choice does not change the rule set described in this article — the rules live in the account configuration on the firm's server side. Pick the platform that fits your existing workflow and indicator stack rather than picking based on perceived rule advantages.
The TX3 6% EOD-trail with lock-at-+6% is one of the more trader-friendly mechanics in the dual-vertical prop space. The trick is getting to the lock — once you cross +6%, the structure becomes static and your accumulated profit is genuinely yours to risk. Front-load disciplined sizing in the first stretch and the rest of the account life is significantly more forgiving than competing trailing models. Pair the lock awareness with the daily 3% rule using the higher reference and you have a clean operating mental model.
Frequently Asked Questions
Is the TX3 Funding drawdown trailing or static?
Hybrid. Trails 6% from closing equity until +6% gain reached, then locks at starting balance permanently. The structure favors traders who push past the lock threshold quickly. Most traders confirm this in the dashboard during onboarding to avoid surprises during the first funded cycle.
What is the max drawdown percentage?
6% — either trailing or locked at starting balance depending on whether you have crossed +6%. Once locked, the floor is functionally static at original capital. The rule is enforced consistently across all account sizes and product tiers within the same family.
When does the lock activate?
Once your 5pm EST closing equity reaches at least +6% gain from starting balance. The intraday peak does not trigger the lock — only the closing print does. Most traders confirm this in the dashboard during onboarding to avoid surprises during the first funded cycle.
What is the daily loss limit?
3% of the higher of starting balance or current equity, evaluated at 5pm EST. Profitable accounts get more daily risk room than starting-balance-only accounts at competing firms. The rule is enforced consistently across all account sizes and product tiers within the same family.
Does intraday equity affect the trail?
No, only the 5pm EST close counts for the daily snapshot. Intraday wicks that recover before the snapshot do not move the trail. Most traders confirm this in the dashboard during onboarding to avoid surprises during the first funded cycle.
What happens after the lock activates?
Floor stays at original starting balance regardless of further equity growth. Accumulated profit becomes fully protected cushion above the locked floor. The rule is enforced consistently across all account sizes and product tiers within the same family.
Can the lock un-activate?
No. Once activated, the lock is permanent for that funded account. There is no scenario where the floor begins trailing again. Most traders confirm this in the dashboard during onboarding to avoid surprises during the first funded cycle.
Does the rule differ between FX and Futures?
The 6% trailing with lock is documented for FX. The futures-specific drawdown variant has not been separately verified in public TX3 materials — verify firm help center. The rule is enforced consistently across all account sizes and product tiers within the same family.
Is the daily DD calculated on starting balance or equity?
The higher of the two — favorable to the trader when equity is above starting balance. This is unusually trader-friendly compared with starting-balance-only models. Most traders confirm this in the dashboard during onboarding to avoid surprises during the first funded cycle.
What is the profit target?
10% of starting balance on 1-Phase and 2-Phase Standard products. The 10% target sits 4% above the lock threshold, so most successful runs activate the lock before hitting the target.
How quickly should I push for the lock?
Most successful TX3 traders activate the lock within 3-7 sessions. Stretching the trailing phase out across many sessions increases exposure to the trail mechanic without structural benefit. Most traders confirm this in the dashboard during onboarding to avoid surprises during the first funded cycle.
Does the lock apply to Instant Funding?
Instant Funding structure varies. The dual Instant Funding models rolled out in 2026 may use different drawdown mechanics. Confirm in the product dashboard before purchase. The rule is enforced consistently across all account sizes and product tiers within the same family.