Daily Drawdown: 3% trailing.
This is based off the highest of your balance or equity going into the new day.
Maximum Loss: 6% trailing.
A trailing drawdown means the drawdown level moves up as your account grows, based on the highest balance or equity reached.
Example: On a $100,000 prop firm account (3% daily drawdown, 6% trailing max drawdown)
(Assume the max drawdown trails your highest equity watermark and stays 6% below it.)
3% Daily Drawdown
If you start the day at $100,000, daily loss limit = $3,000
Daily floor: $97,000
Go below $97,000 equity that day → daily breach
6% Trailing Max Drawdown
Trailing max DD = 6% below your highest equity reached
At any moment: Max floor = High-Water Mark (HWM) × (1 − 0.06)
At the start (HWM = $100,000):
Max floor: $100,000 × 0.94 = $94,000