Daily Loss Limit

📉 Daily Drawdown Rule Explained

The daily drawdown is the maximum amount of loss you’re allowed to incur on your account in a single trading day. It is calculated based on either:

• The previous day’s ending balance (EOD), or the current day’s starting balance (both are the same thing)

🔒 Important: Our drawdown is balance-based, which means open PNL (unrealized profit/loss) is not considered when calculating the drawdown limit.

Your challenge or funded account’s Equity/Balance must not hit or fall below the drawdown limit shown on your dashboard at any time during the day. Violating this rule will result in a breach of your account.

A daily loss limit reset countdown timer is available on your dashboard to help you track when your limit refreshes.

✅ Example 1: After a Profitable Day

• Previous Day Ending Balance: $10,150 ($150 profit)
• Daily Drawdown Limit: 5%
• Daily Maximum Loss Allowed Today: $507.5
• Daily Drawdown Threshold: $9,642.50

If your balance/equity drops to $9,642.50 or below at any time today, you breach the daily drawdown rule.

❌ Example 2: After a Losing Day

• Previous Day Ending Balance: $9,950 ($50 lost)
• Daily Drawdown Limit: 5%
• Maximum Loss Allowed Today: $497.50
• Daily Drawdown Threshold: $9,452.50

If your balance/equity hits $9,452.50 or lower during the day, the account is in violation.

⚠ Key Reminders:

• The drawdown limit is based on balance only, not equity.
• Open PNL is ignored when calculating the limit.
• The limit resets daily, and the countdown timer helps you stay compliant.