The5%ers $20,000 Account Rules
The The5%ers $20,000 account has a $800 daily loss limit (4%), $800 max drawdown (static (floor never moves)), and a $1,200 profit target. The challenge fee is $95, with a minimum of 3 trading days required. Breach level is $19,200.
Last verified: 2026-03-21 | Official rules page
The5%ers's $20,000 Phase 1 has a $800 daily loss limit (4%), $800 maximum drawdown (static (floor never moves)), and a $1,200 profit target. Minimum 3 trading days. Fee: $95.
| phase 1 | funded | |
|---|---|---|
| Daily Loss | $800 (4%) | $800 (4%) |
| Max Drawdown | $800 | $800 |
| DD Type | Static | Static |
| Profit Target | $1,200 | None |
| Min Days | 3 | None |
| News Trading | allowed | allowed |
| Overnight | Yes | Yes |
You can lose max $800 in a single day.
Your account can never drop below $19,200.
If you grow to $30,000, the floor stays at $19,200(static). Your profits don't shrink your safety net.
At 1% risk per trade ($200), you can take 4 losing trades before hitting the daily limit.
Understanding how many consecutive losers your account can survive is the difference between passing and failing. Here is the math for the The5%ers $20,000 account at different risk levels, based on the $800 max drawdown (static (floor never moves)).
| Risk Per Trade | Dollar Risk | Losers to Max DD | Losers to Daily Limit |
|---|---|---|---|
| 0.5% | $100 | 8 | 8 |
| 1% | $200 | 4 | 4 |
| 1.5% | $300 | 2 | 2 |
| 2% | $400 | 2 | 2 |
| 3% | $600 | 1 | 1 |
At the commonly recommended 1% risk per trade ($200), you can absorb 4 consecutive losing trades before breaching the $800 max drawdown. However, the $800 daily loss limit means you can only take 4 losers in a single day before getting locked out. This is the constraint that bites most traders first.
Because The5%ers uses static drawdown, profits you accumulate before a losing streak create additional buffer. If you are up $800 before a drawdown, you effectively have $1,600 of room at 1% risk, which translates to 8 losing trades.
Proper position sizing on the The5%ers $20,000 account depends on your stop loss distance, the instrument you trade, and the rules you need to respect. Below are practical guidelines for this specific account.
Forex (standard lots):
At 1% risk ($200) with a 20-pip stop loss, you can trade approximately 1.00 standard lots (each pip = ~$10 on majors). With a 50-pip stop, that drops to 0.40 lots. If you plan to take multiple trades in a day, remember your combined risk cannot exceed the $800 daily limit.
Conservative vs. aggressive sizing:
Conservative (0.5% risk): Risk $100 per trade. You can survive 8 consecutive losers before max drawdown. At a 2:1 reward-to-risk ratio, you need 6 winning trades (with no losers) to hit the $1,200 profit target.
Standard (1% risk): Risk $200 per trade. You can survive 4 consecutive losers. At a 2:1 reward-to-risk ratio, you need 3 winning trades to hit the target.
Aggressive (2% risk): Risk $400 per trade. Only 2 losers before breach. Just 2 losers hit the daily limit. Not recommended unless you have a proven win rate above 60%.
The key takeaway: on a $20,000 account with $800 max drawdown, your static drawdown gives you room to recover from losing streaks as long as you size properly. Your profit target is $1,200 (6%), which means you need to earn 1.5x what you can afford to lose. Use the drawdown simulator to test different scenarios.
- +Static drawdown — simple, forgiving
- +News trading fully allowed
- +Overnight and weekend holding allowed
- +Scaling up to $4M account size
- +Profit split reaches 100% for consistent traders
- -Tight drawdown (4% daily AND 4% max)
- -Profit split starts low at 50%
- -MT5 only — limited platform choice
- -Primarily forex — limited instrument selection
Check a trade against The5%ers's rules for the $20,000 account. No sign-up required.