How you lose the account
Losing an account in these firms is not just about losing money; it is about violating the operational boundaries established to protect their capital. In both firms, the account is immediately terminated if:
- The account balance or equity drops below the maximum drawdown threshold.
- You violate specific trading style prohibitions, such as using unauthorized bots or hedging.
- You fail to comply with the consistency rules during the evaluation or funded phases (where applicable).
- The account becomes inactive (Funded Futures Family closes accounts after 2 weeks of inactivity; The Trading Pit after 21 days).
- In Funded Futures Family, you can also lose the account if you trade within 2% of the CME price limits or engage in micro-scalping (positions under 20 seconds).
Maximum drawdown
The way drawdown is calculated is the single most important factor in your survival as a trader.
- Funded Futures Family: This firm offers a variety of drawdown types depending on the plan. In most "EOD" plans, the drawdown is updated only at the end of the trading day based on realized gains. In "Intraday" plans, it trails your unrealized profit in real-time.
- Example: In a $50,000 Premier EOD account with a $1,500 drawdown, if you make $1,000 in realized profit during the day, your drawdown level will move from $48,500 to $49,500 only after the market closes. If it were an Intraday plan, that level would move up as soon as your open trade is $1,000 in profit.
- The Trading Pit Futures: They use a trailing drawdown based on the end-of-day balance. A critical advantage here is that the drawdown stops trailing once it reaches the starting balance of the account (the "static" point).
- Example: In a $50,000 Prime account with a $2,000 drawdown, the floor starts at $48,000. If you end the day at $51,000, the floor moves to $49,000. Once your balance reaches $52,000, the floor locks at $50,000 and never moves higher, giving you more breathing room as you grow the account.
Daily drawdown
The daily loss limit is the "emergency brake" that prevents you from blowing the entire account in a single session.
- Funded Futures Family: Remarkably, there is no explicit Daily Loss Limit (DLL) during the Evaluation or Simulated Funded phases. While this gives more freedom, it is a high-risk setup: a single bad day can hit your maximum drawdown and end the account. A DLL is only applied once the trader reaches the "Professional Stage."
- The Trading Pit Futures: They implement a "Daily Pause." This is recalculated from the previous day's closing balance at 16:15 CT. If hit, the platform closes all positions and prevents further trading until the next session. This acts as a forced discipline mechanism.
Rules beyond drawdown
Risk management in these firms includes several "invisible" rules that can lead to disqualification:
- Consistency Rules:
- Funded Futures Family: Most plans require that no single day accounts for more than 40% to 50% of your total profit. This prevents "lucky shots" from passing the evaluation.
- The Trading Pit: A 40% consistency rule applies only to the Futures Prime Challenge. It does not apply to Earning accounts.
- Qualifying Days:
- Funded Futures Family: Requires a specific number of "qualified" days (with at least $200 profit) to be eligible for payouts.
- The Trading Pit: Requires 5 winning days of at least $200 for the first and subsequent rewards.
- Inactivity:
- Funded Futures Family: Requires at least 1 trade per week. 2 weeks of inactivity leads to closure.
- The Trading Pit: 21 consecutive days without a trade results in account breach.
Risk that comes from the setup
The technical environment is a hidden risk factor. Slippage or platform crashes can cause drawdown breaches.
- Funded Futures Family: They restrict the use of EAs and algorithmic trading. They allow platforms like NinjaTrader and Tradovate. A specific risk here is the "2% CME Price Limit Rule," which prohibits trading when a contract is near its price limit.
- The Trading Pit Futures: They allow EAs and offer a much wider range of professional platforms, including ATAS, Quantower, and Sierra Chart. Using professional order-flow platforms (like ATAS) can reduce the risk of "blind" entries, but the firm charges for Level 2 data add-ons, which is an extra cost at risk.
What is at stake and what you recover
The financial risk is the cost of the challenge, while the recovery is the profit split.
- Funded Futures Family: Most plans are based on a monthly subscription ($144 to $529 for Premier plans). If you don't pass quickly, you lose more capital over time. They offer a high 90% profit split in simulated accounts, but require maintaining a "buffer" (drawdown level + $100) before you can withdraw, which limits initial liquidity.
- The Trading Pit Futures: They use a one-time fee model ($99 for $50k, $189 for $100k). There is no subscription pressure. The profit split is lower (80%), and they use a "laddering" system where you must hit profit targets to unlock payouts and level up to more capital.
Frequently asked questions
Which firm is cheaper to start with, Funded Futures Family or The Trading Pit Futures?
The Trading Pit Futures is generally cheaper for a one-time entry, offering a $50,000 account for a $99 one-time fee. Funded Futures Family uses a monthly subscription model, where a $50,000 Premier EOD account costs $194 per month. If you take several months to pass, Funded Futures Family becomes significantly more expensive.
Does Funded Futures Family or The Trading Pit Futures have a stricter drawdown?
Funded Futures Family is stricter in its "Intraday" plans because the drawdown follows unrealized profits in real-time. The Trading Pit Futures uses an End-of-Day trailing drawdown that becomes static once it reaches the initial balance, providing a safer environment for the trader once the account is in profit compared to FFF's trailing models.
Can I use automated trading (EAs) in Funded Futures Family or The Trading Pit Futures?
The Trading Pit Futures allows the use of EAs and algorithmic trading without explicit prohibition, as long as it isn't used for arbitrage or malicious strategies. In contrast, Funded Futures Family strictly prohibits bots and algorithmic trading, making it a firm exclusively for manual traders.
Which firm has a more lenient inactivity rule, Funded Futures Family or The Trading Pit Futures?
The Trading Pit Futures is more lenient, allowing up to 21 consecutive days without trading before the account is breached. Funded Futures Family is much stricter, requiring at least one trade per week and marking an account as inactive after only 2 consecutive weeks of no activity.
