How you lose the account
At both Breakout and My Funded Perps, account loss is primarily triggered by reaching drawdown limits or violating prohibited trading strategies. You will lose the account if the equity touches the maximum or daily loss limits. Beyond numbers, both firms share strict prohibitions against cross-account hedging and sharing accounts or IP addresses. Breakout specifically bans "account cycling" and strategies that are hard to replicate in live environments due to liquidity risks. My Funded Perps adds an inactivity risk: you must trade at least every 30 days during evaluation and every 7 days once funded.
Maximum drawdown
The maximum drawdown determines the ultimate survival line of the account. Both firms use static drawdowns, which are generally safer than trailing ones because they do not move up as you make profits.
- Breakout: The limit is strictly static from the starting balance and never changes, even after payouts. For a 1-Step Classic $100,000 account, the maximum drawdown is 6% ($6,000). This means the account is closed if equity hits $94,000. If the trader grows the account to $110,000, the survival cushion increases to $16,000.
- My Funded Perps: The behavior depends on the plan. In Signature accounts, the drawdown is 6% static, but there is a "floor locking" rule: after the first payout, the floor moves to the starting balance. For an Elite account, the floor is permanently at 5% below the initial balance.
- Numerical Example (Comparison): In a $100,000 account with $10,000 in profits:
- Breakout: Your limit remains $94,000. You have $16,000 of room.
- My Funded Perps (Signature): Your limit starts at $94,000. If you withdraw $5,000, your new limit "locks" at $100,000. You now have only $5,000 of room despite having been at $110,000 previously.
Daily drawdown
The daily drawdown is the most common reason for accidental account loss.
- Breakout: It is 3% and is recalculated daily at 00:30 UTC. The calculation is based on the closed balance at that time, excluding floating P&L, but it is monitored against equity. A unique feature is that requesting a payout "widens" your daily limit by the payout amount for that day.
- My Funded Perps: It is 3% of the starting balance, measured from the equity at the start of the day (midnight NY time). This includes open positions. Note that the "Elite No DLL" plan is the only one that removes this specific risk entirely.
- Numerical Example (Breakout): You start the day with $100,000 balance and an open trade at +$2,000 (Equity $102,000). The 3% limit ($3,000) is calculated on the $100,000 balance. Your daily loss limit is $97,000. Because you are at $102,000 equity, you can actually lose $5,000 of equity before breaching the $97,000 level.
Rules beyond drawdown
Risk management is also enforced through operational constraints:
- Stop Loss: Neither firm explicitly requires a mandatory Stop Loss.
- Consistency: Neither firm enforces a specific consistency percentage or "consistency rule" on profit distribution.
- Position Limits: Breakout does not have a per-trade risk cap but limits maximum size per instrument. My Funded Perps is stricter, allowing a maximum of 15 open positions and 20 pending orders, with a market exposure cap shared across accounts of the same plan.
- Hedging: Both allow hedging within a single account only under specific conditions (substantial profit/loss already existing). Hedging across different accounts is a terminable offense in both.
Risk that comes from the setup
The technology used can introduce "execution risk," where slippage or platform lag causes a drawdown breach that wouldn't happen in a perfect environment.
- Platforms: Both firms use proprietary web-based terminals instead of MetaTrader. This forces traders to adapt to new interfaces, which increases the risk of execution errors.
- Connectivity: My Funded Perps offers an API (REST/WebSocket), which is a risk-mitigation tool for professional traders using automation. Breakout is limited to its proprietary terminal, which may be a bottleneck for those used to external tools.
- News Trading: Breakout allows it without restrictions. My Funded Perps restricts news trading on funded accounts: you cannot open new positions or trade manually from 2 minutes before to 2 minutes after high-impact news. Violating this on a funded account is a major risk.
What is at stake and what you recover
The price of the evaluation is the "at-risk" capital.
- Refunds: Neither firm offers a standard fee refund with the first payout. Breakout only refunds active evaluations if KYC is rejected.
- Costs: For a $10,000 account, Breakout's Classic costs $85. My Funded Perps offers a "Select" version for $40, but with a tighter 3% max drawdown, making it much easier to lose.
- Withdrawals: Breakout offers a lower risk of "capital lockup" by allowing on-demand payouts 24/7 from the first day. My Funded Perps requires manual review and locks trading while a payout is pending (except for Elite), which prevents you from managing risk during the withdrawal window.
Frequently asked questions
Which firm is cheaper to start a $50,000 challenge, Breakout or My Funded Perps?
If price is the only factor, My Funded Perps is cheaper. Its $50,000 "Select" plan costs $190, compared to $400 for Breakout's "1-Step Classic". However, the Select plan has a very tight 3% maximum drawdown, while Breakout offers 6%. If you want comparable rules to Breakout, the My Funded Perps "Signature" plan costs $419, which is slightly more expensive than Breakout.
Which firm has more restrictive news trading rules, Breakout or My Funded Perps?
My Funded Perps is significantly more restrictive. While they allow news trading during the evaluation phase, funded accounts are prohibited from opening new positions or executing manual trades within a 4-minute window (2 minutes before and 2 minutes after) around high-impact news. Breakout, on the other hand, allows news trading without any time-based restrictions on both evaluation and funded accounts.
Can I use Expert Advisors (EAs) on Breakout or My Funded Perps?
Both have significant limitations. Breakout does not support MetaTrader, so traditional EAs (.ex4/.ex5) cannot be used; you are limited to their proprietary terminal. My Funded Perps allows automation but only through their official API (REST, WebSocket, or MCP). This requires custom coding or specialized tools, and they strictly prohibit High-Frequency Trading (HFT) and "pass-the-evaluation" services.
Which firm offers faster payouts for funded traders, Breakout or My Funded Perps?
Breakout offers a more flexible payout system. They allow payouts on demand, 24/7, starting from the very first day you are funded, with approvals typically within 12 to 24 hours. My Funded Perps (except for the Elite plan) limits requests to one per New York calendar day, and more importantly, they lock your trading account while the manual review of the payout is pending.
