The daily loss limit is set at 5% of your initial account balance.

The daily drawdown is calculated as follows:

At the 5PM EST Day Change, we take the higher value of either the account balance or account equity and substract a fixed 5% of the initial balance from this higher value. This resulting amount is set as the daily loss limit for the new day.

Example 1 : On a $100,000 account, if at 5 PM EST you have an open trade with a floating profit of $1,000, your account equity will be $101,000. With a 5% daily drawdown, the equity cannot drop below $96,000 ( $101,000 - $5,000 ) on the next trading day.

Example 2 : On a $100,000 account, if at 5 PM EST you have an open trade with a floating loss of $1,000, your account equity will be $99,000. Since your $100,000 balance is higher than your $98,000 equity, your daily drawdown limit of $5,000 will be calculated based on the $100,000 balance. This means for the next trading day, the equity cannot drop below $95,000 ( $100,000 - $5,000 ).