Every prop firm publishes the same handful of numbers on its pricing page: profit target, maximum drawdown, daily loss limit. They look like simple settings. In practice each one is a lever, and pulling it in either direction changes both how many traders pass and how much you owe the ones who do.
Profit target
An 8 percent Phase 1 target with a lower Phase 2 target, often around 5 percent, is the closest thing this industry has to a standard. Push the target higher and you will see fewer passes, which lowers your funded headcount and your eventual payout exposure, but it also makes your offer look stricter next to competitors advertising an easier path. Push it lower and the reverse happens.
Maximum drawdown, static or trailing
A static drawdown measured from the starting balance is simpler to explain and easier for a trader to plan around. A trailing drawdown, measured from the account's highest recorded equity, is stricter and reduces your risk further out, but it generates noticeably more support tickets from traders who do not fully understand why their buffer shrank after a winning day. If you choose trailing, invest early in a clear, visual explanation inside the trader's dashboard, not just a paragraph in your terms.
Daily loss limit
This is the rule most often misunderstood, mainly because traders lose track of exactly when the daily reset happens relative to their own timezone. Showing daily loss used as a live, real time bar in the dashboard, rather than something a trader has to calculate themselves from a trade history, removes a large share of disputes before they start.
Putting it together
There is no universally correct combination. A firm targeting cautious, first time challenge buyers might choose a slightly easier target with a tighter drawdown to control risk. A firm competing on being the accessible option might loosen drawdown and daily limits to win on pass rate, accepting a higher payout obligation in exchange for stronger word of mouth. The mistake is not picking a particular combination. It is picking one without understanding what it is actually trading off.