Maximum Daily Loss – 3% Static Rule
The maximum daily loss is set at 3% and is static, meaning it does not adjust based on previous balance or profits.
Example:
If you have a $100,000 account and at 5 p.m. EST you hold an open trade with a floating profit of $2,000, your account equity becomes $102,000.
The 3% daily drawdown is then calculated from this amount:
$102,000 × 3% = $3,060
This means your account must not fall below $99,000 on the next trading day, regardless of whether the profit was realized or not.
($102,000 – $3,000 = $99,000 minimum equity threshold)
Violating this rule may result in loss of funding or account breach.