The Daily Drawdown represents the maximum loss you can incur within a single trading day.
It is one of the most important rules designed to promote consistent and responsible risk management.
At the start of each new trading day (00:00 UTC), the system records your starting equity or balance - whichever is higher.
From that point, your daily loss limit is calculated as a fixed percentage (for example, 4% or 5%) of this starting value.
If, at any time during the day, your account equity drops below this threshold, your account will be considered breached.
Example:
If your starting equity at the beginning of the new day is $103,000, but your balance is $100,000, your daily stop-out level is $98,000 (in case your DD is set to 5%) within the same day until the equity resets with your new registered balance at the market rollover.