Daily vs max drawdown
Updated 2026-07-05
Quick answer
Daily drawdown resets each UTC day from the day-start balance; max drawdown is a fixed floor based on the account starting balance.
- Daily drawdown uses the current UTC day-start balance
- Max drawdown uses the original phase/account starting balance
- Drawdown is checked on settled balance
- Open trades do not change drawdown until they settle
Worked example — 5% daily and 10% max on $3,000
Starting balance: $3,000 Max drawdown floor: $2,700 Day 1 start: $3,000 → daily floor is $2,850 Day 1 ends at $3,120 Day 2 start: $3,120 → daily floor is $2,964 Max drawdown floor remains $2,700
Edge cases
- What closes an account immediately?
Breaching daily drawdown or max drawdown closes the account.
- Does a new day recover a max drawdown breach?
No. Daily drawdown resets daily; max drawdown does not reset.
- Which timezone is used?
Rules use UTC days.
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