The Daily Loss Limit is the maximum your account can lose on any given day. Daily Loss Limit is calculated using the previous day balance which resets at 5 PM EST. Unlike other firms, we do NOT base our calculations on previous day equity since the balance-only model allows you to scale gains without fear of losing your account. The Daily Stop compounds with the increase in your account.
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Example: if your prior day's end-of-day balance (5pm EST) was $100,000, your account would violate the daily stop loss limit if your equity reached $95,000 during the day. If your floating equity is +$5,000 on a $100,000 account, your new- day (5pm EST) max loss is based on your balance from the previous day ($100,000). So, your daily loss limit would still be $95,000.