The Maximum Daily Drawdown limit is a crucial rule that should not be violated.
Your Max Daily Drawdown limit is 5% x Initial account balance
The Daily Stopout Level is your Starting Day balance - Max Daily Drawdown
The Max Daily Drawdown resets daily at Midnight Broker's Time
For example, if you began with a $100,000 challenge and had an account balance of $104,000 on day 3:
Max Daily Drawdown would be 5% x $100,000 = $5,000
Daily Stopout Level would be $104,000 - $5,000 = $99,000
To better understand your limits, always follow your account loss analysis, which is located in your dashboard