The Maximum Daily Drawdown Limit is 4% of the Initial Balance.

Example 1:

For a $100,000 1-Step Nitro Evaluation, the Daily Drawdown is 4% of the Initial Balance.

Day 1:

Starting Balance/Equity: $100,000

Allowed Daily Drawdown: 4% of $100,000 = $4,000 (stop-out limit = $96,000)

Example 2:

Day 2:

End of Day Balance (Day 1): $104,000

End of Day Equity (Day 1): $103,000

Daily Drawdown Limit: 4% of $100,000 = $4,000 (stop-out limit = $100,000). If Either Equity or Balance reaches this limit, it would result in a breach of the Daily Drawdown Limit.