At The Skilled Trader, the maximum daily loss is set at 4% of the account’s highest balance or equity, whichever is greater, calculated daily at 5 p.m. EST.
We calculate the daily drawdown as follows: at 5 p.m. EST, we take the greater of your account balance or equity, and subtract a fixed 4% from that value to establish your daily loss limit for the following trading day.
This ensures that traders maintain discipline and consistent risk management at all times.
Example:
If your account balance is $100,000, your equity must not fall below $96,000 during the trading day.
Breaching this limit will result in the immediate termination of your active account.