Prop Firm CalculatorsHow the daily loss limit works
The daily loss limit is the most you may lose in one trading day. Firms measure it in one of three ways, and the calculator supports all three:
- A percentage of the starting balance, counted down from the day's opening balance. On a $100,000 account with a 5% limit, you may fall $5,000 below wherever the day opened.
- A percentage of the day's opening balance, so the limit grows and shrinks with the account.
- A percentage of the higher of the day's opening balance and opening equity, which also counts profit in open trades at the reset.
The floor is opening level − limit. Most firms count losses in equity, open trades included, so a trade that dips below the floor and recovers still breaches.
Static vs trailing drawdown
Static: the floor is fixed at starting balance − maximum loss and never moves. Trailing: the floor follows your highest equity at the same distance, so it rises as you make money and never falls back. Some firms lock a trailing floor once it reaches the starting balance.
The calculator shows both floors and which one you will hit first. Rules vary between firms, so check yours.
Questions
What is the daily drawdown in a prop firm?
The most an account may lose in one trading day, usually 4% to 5% of the starting balance, measured from the balance or equity at the start of the day. Falling below it ends the challenge.
What is trailing drawdown?
A maximum loss floor that follows the account's highest equity at a fixed distance. It rises as the account makes new highs and never moves down.
Does the daily loss limit include open trades?
At most firms, yes: the limit is checked against equity, which includes floating losses on open trades, not only closed trades.
When does the daily loss limit reset?
Usually at midnight on the broker's server clock, which for many MetaTrader brokers is UTC+2 or UTC+3. Your firm's rules state the exact time.
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<p><a href="https://propsim-enterprise.github.io/prop-firm-calculators/drawdown/">Prop firm drawdown calculator</a> by <a href="https://propsim.markets">PropSim</a></p>Thinking of starting a prop firm?
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