Max daily loss is based on 4% of the Initial Account Balance or Equity, whichever is higher, at 5pm EST. We calculate daily drawdown as follows: At the 5pm EST day change, we will take the higher of either the account balance or account equity and subtract a fixed 4% of the initial balance from the higher value to establish the daily loss limit for the next day.

Example 1: On a 100K account, if at 5pm EST you have an open trade with a floating profit of $2,000, your account equity would be $102,000. With a 4% daily drawdown, the equity cannot drop below $98,000 ($102,000 – $4,000 = $98,000) on the next trading day.