The maximum daily drawdown is set at 4% and is trailing, meaning it is based on the account's equity

Example:

On a $100,000 account, if at 5pm EST you have an open trade with a floating profit of $2,000, your account equity will be $102,000. With a 4% daily drawdown, the equity cannot drop below $98,080 ($102,000 - $4,080 = $98,080) on the next trading day.