How is the daily loss limit calculated?

The daily loss limit is the maximum amount (measured in account equity) that the account can lose on any given day. The daily loss limit is set using the previous day’s end of day balance, which resets at 17:00 EST. Violating this limit is a hard breach, meaning loss of challenge account access.

Hard Breach: 5% of the previous days' end of day balance (realized P&L)

Please note that we do not base our limit calculations on the previous day’s end of day equity, but instead use the end of day balance as the balance is a static value at the start of each trading day and allows the parameter to be tracked more transparently by users. The daily loss limit increases or decreases with any notional increase or decrease of the account balance.