The Maximum Daily Loss is the amount you are allowed to lose on any given day. This rule uses the higher value between your account’s equity and balance. It is calculated as a percentage of the starting equity or balance for each day. The rule dictates that your equity, which includes both floating profit/loss (PnL) and any closed positions, must not drop below the Maximum Daily Loss limit. This limit resets at 00:00 GMT +3/server time daily. Example 1: Equity is higher than the balance at the start of the day (2-Step Evaluation example) At the start of day 3, your account balance is $113,000, and your equity is $116,500. Since equity is higher, the Daily Loss Limit is based on 5% of the equity: Daily loss = $116,500 * 5% = $5,825 Daily Loss Limit. This means your equity can’t go below $116,500 – $5,825. Daily Loss Limit = $110,675 on day 3. If your equity falls below $110,675 at any point during day 3, your account will be closed. Example 2: Balance is higher than the equity at the start of the day (2-Step Model example) At the start of day 8, your account balance is $104,000, and your equity is $101,000. Since the balance is higher, the Daily Loss Limit is based on 5% of the balance: Daily loss = $104,000 * 5% = $5,200 Daily Loss Limit. This means your equity can’t go below $104,000 – $5,200. Daily Loss Limit = $98,800 on day 8. If your equity drops below $98,800 at any point during day 8, your account will be closed.