This rule prevents excessive losses within a single trading day and helps promote responsible, long-term trading habits.
Understanding how this limit is calculated — and what happens if it’s breached — is critical to your success in all phases: evaluation, funded, and instant accounts.
Daily Loss Limit – How It Works
Each day at 5 PM EST, your Daily Drawdown Limit is recalculated based on the higher of your account’s balance or equity at that time. This value becomes your baseline for the next trading day.
Your Daily Loss Limit is then calculated as a percentage of that value. If your equity or balance falls below the limit during the next trading day, your account will be breached.
This rule applies across all models — including evaluation and funded phases — and includes both realised and unrealised losses.
Daily Loss Percentages by Model
Model | Daily Loss Limit |
Access (Pay After Pass) | 5% |
Instant Funded | 3% (Trailing) |
1 Step Standard | 4% |
1 Step Pro | 3% |
2 Step Standard | 5% |
2 Step Pro | 4% |
3 Step Standard | 4% |
For retry accounts (with the Free Retry add-on), Daily Loss Limits may be reduced. For example, 1 Step retry accounts are adjusted to 4% → 3%.
Examples
Example 1: 2 Step Standard ($100K account – 5% Daily Loss)
Previous day at 5 PM EST
Equity: $102,000
Balance: $100,000
Higher value used = $102,000
5% of $102,000 = $5,100
Minimum balance/equity for next day = $96,900
If your equity or balance drops below $96,900 at any time the next day, your account will be breached.
Example 2: 1 Step Pro ($100K account – 3% Daily Loss)
Previous day at 5 PM EST
Equity: $104,000
Balance: $103,000
Higher value used = $104,000
3% of $104,000 = $3,120
Minimum balance/equity for next day = $100,880
Daily Reset Time
Reset occurs at 5 PM EST every day
Based on the highest value of equity or balance at that time
Limit is fixed for the following day — it does not adjust intraday
What Happens if You Breach?
A breach of the Daily Loss Limit results in immediate and permanent closure of the account. This applies to:
Step 1
Step 2
Funded accounts
However, traders are always welcome to purchase a new challenge or, if eligible, use their Free Retry (add-on only, applies to evaluation accounts).
Summary
The Daily Loss Limit is calculated once per day at 5 PM EST
It uses the greater of balance or equity from the previous day
Any drop below the threshold results in a breach
Limits are fixed per model, and do not adjust mid-day
Staying within your daily limits is crucial for progressing to funding and maintaining your account. If you're unsure about your drawdown levels or limits, please reach out to [email protected] or check your trader dashboard for real-time monitoring.
