Max daily loss is based on 5% of the Initial account balance.

We calculate daily drawdown as follows: Upon the 5pm Est day change, we will take the higher figure of either the account balance or account equity and subtract a fixed 5% of the initial balance from the higher value as the daily loss limit for the new day.

Example 1: On the first day, you start with 100k account. Your daily drawdown is 5% meaning your available daily dd of $5,000 and daily limit would be at 95k.

​Example 2:
If on a 100K Account at 5pm EST you have an open trade with a floating loss of -$2,000, your account equity will be $98,000. Because your $100K balance is higher than your $98,000 equity, your daily drawdown limit of $5,000 will be calculated on a $100K balance. This means for the next trading day, the equity cannot drop below $95,000 ($100,000 - $5000 = $95,000).
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Example 3:
If there are no open trades at 5pm EST, the daily drawdown will be 5% of whatever the closed balance is.

Daily drawdown will reset each day at 5PM EST.