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Daily drawdown — how the daily loss limit really works

Updated 2026-07-05
Quick answer

Daily drawdown = the % of the UTC day-start balance you're allowed to lose before the account closes. It resets at 00:00 UTC each day. It is measured on your settled balance, not on floating equity.

The formula

  • Day-start balance = your settled balance at 00:00 UTC.
  • Daily floor = day-start balance × (1 − daily DD %).
  • If settled balance ever touches or drops below the daily floor, the account is closed.
  • Open (floating) trades do NOT breach daily DD — only settled losses count.
  • The daily floor recalculates the moment the UTC day rolls over.

Per-plan daily drawdown at start

  • Basic 2-Step (4%): $1,500 start → floor $1,440 (−$60/day)
  • Pro 2-Step (5%): $3,000 start → floor $2,850 (−$150/day)
  • Elite Two Step (5%): $6,000 start → floor $5,700 (−$300/day)
  • One Step Basic (4%): $4,000 start → floor $3,840 (−$160/day)
  • One Step Pro (4%): $8,000 start → floor $7,680 (−$320/day)
  • Elite Direct (4%): $3,000 funded → floor $2,880 (−$120/day)
  • Pro Elite (4%): $5,000 funded → floor $4,800 (−$200/day)
Worked example — Multi-day path on Pro 2-Step (5% daily)
Day 1 open: $3,000 → floor $2,850
Day 1 settles: $3,110 (+$110)
Day 2 open: $3,110 → new floor $2,954.50
Day 2 down to $2,955 → still safe (above floor)
Day 2 settles: $2,953 → BREACH (below $2,954.50), account closes
The next UTC day would have re-based the floor, but the breach happened before 00:00 UTC.
Edge cases
  • Does an open losing trade count toward daily drawdown?

    No. Only settled/closed losses count. A losing floating position that reverses to a win never touches drawdown.

  • What is the exact reset time?

    00:00 UTC. Not your local midnight, not exchange open, not broker rollover — strictly UTC midnight.

  • Can profit early in the day give me more room to lose later?

    Yes intra-day, because your floor is fixed at the start of the UTC day. But the floor does NOT float up when you profit — it stays at start-of-day × (1 − daily DD).

  • Does daily DD apply on evaluation and funded?

    Yes on both. Every phase and every funded account carries its own daily and max drawdown from its own starting balance.

  • If I hit the floor exactly, is it a breach?

    Touching or crossing the floor closes the account. Stay strictly above the floor at settle time.

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