Daily Drawdown: 4% trailing.
This is based off the highest of your balance or equity going into the new day.
Maximum Loss: 6% trailing.
Trailing drawdown moves upward as your account balance increases.
Example: On a $100,000 prop firm account (4% daily drawdown, 6% trailing max drawdown)
(Assume max drawdown trails your highest equity (high-water mark).)
4% Daily Drawdown
4% of $100,000 = $4,000
If you start the day at $100,000, your daily floor is:
$100,000 − $4,000 = $96,000
If equity drops below $96,000 that day → daily breach
6% Trailing Max Drawdown
Trailing max DD = 6% below your highest equity reached
Max floor = High-Water Mark (HWM) × 0.94
At the start (HWM = $100,000):
Max floor: $100,000 × 0.94 = $94,000