The Maximum Daily Drawdown is the maximum loss you are allowed to incur in a single trading day, including both closed (realised) and open (floating) P/L. It is expressed as a percentage of the previous day’s end-of-day balance and is recalculated every day at 21:00 UTC.

At ThePropTrade, the Daily Drawdown is balance-based, but it is monitored using your equity during the trading day. This applies to all programs and stages.

Exceeding Maximum Daily Loss is considered a hard breach and results into closure of your account.

How the Maximum Daily Drawdown Is Calculated

1. At 21:00 UTC, the system records your end-of-day balance.
2. The Daily Drawdown percentage is applied to this balance.
3. The result defines the minimum allowed equity for the next trading day.
4. If your equity falls below this level at any point during the day, your account will be in breach of the Maximum Daily Drawdown rule.

Example

• End of previous day’s balance: $101,500
• Daily Drawdown: 4%

Step 1: Calculate 4% of $101,500

$101,500 × 4% = $4,060

Step 2: Subtract this from the previous end-of-day balance

$101,500 − $4,060 = $97,440

On the following trading day:

• Your equity must not fall below $97,440 at any time.