Daily Drawdown

Risk Management

Definition

The maximum you can lose in a single trading day, usually calculated from starting balance or equity at midnight.

Example

With a 5% daily drawdown on a $100K account, you can't lose more than $5,000 in one day. Exceeding it fails your challenge.

Deep dive: read the full rule explanation

Related terms

• End-of-Day Drawdown
• Maximum Drawdown

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