New to prop firms, question on daily drawdown
Hey everyone, been lurking for a bit, decided to join. I'm primarily a discretionary futures trader, mostly ES and NQ. Lately, I've been looking into prop firm challenges, specifically those with fairly tight daily drawdown limits, like 3-4% of the starting balance. My own personal risk management is usually more focused on a weekly or even monthly max loss, allowing for a few bad days as long as the bigger picture holds. For those of you who trade prop accounts, how do you adjust your intra-day risk sizing to avoid hitting those daily drawdown limits, especially if you have a strategy that sometimes sees bigger swings? Are you essentially cutting trades much sooner, or just significantly reducing your position size compared to what you'd typically run on your own capital? Trying to figure out if it's a fundamental shift in strategy or just a tighter leash.