{"id":10119,"date":"2025-11-25T11:28:04","date_gmt":"2025-11-25T11:28:04","guid":{"rendered":"https:\/\/persistent-cyan-ant.theproptrade.com\/faq\/instant-funding\/instant-funding-faqs\/how-is-maximum-daily-drawdown-calculated\/"},"modified":"2026-01-13T10:46:17","modified_gmt":"2026-01-13T10:46:17","slug":"maximum-daily-drawdown-instant-funding","status":"publish","type":"docs","link":"https:\/\/persistent-cyan-ant.theproptrade.com\/?docs=instant-funding-faqs\/maximum-daily-drawdown-instant-funding","title":{"rendered":"How is Maximum Daily drawdown calculated?"},"content":{"rendered":"\n<p>The Maximum Daily Drawdown is the maximum loss you are allowed to incur in a single trading day, including both closed (realised) and open (floating) P\/L. It is expressed as a percentage of the <strong>previous day\u2019s end-of-day balance<\/strong> and is recalculated every day at <strong>21:00 UTC<\/strong>.<\/p>\n\n\n\n<p>At thePropTrade, the Daily Drawdown is <strong>balance-based<\/strong>, but it is <strong>monitored using your equity<\/strong> during the trading day.<\/p>\n\n\n\n<p><strong>How the Maximum Daily Drawdown Is Calculated<\/strong><\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>At <strong>21:00 UTC<\/strong>, the system records your <strong>end-of-day balance<\/strong>.<\/li>\n\n\n\n<li>The Daily Drawdown percentage is applied to this balance.<\/li>\n\n\n\n<li>The result defines the <strong>minimum allowed equity<\/strong> for the next trading day.<\/li>\n\n\n\n<li>If your <strong>equity<\/strong> falls below this level at any point during the day, your account will be in breach of the Maximum Daily Drawdown rule.<\/li>\n<\/ol>\n\n\n\n<p><strong>Example<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>End of previous day\u2019s balance: <strong>$101,500<\/strong><\/li>\n\n\n\n<li>Daily Drawdown: <strong>4%<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Step 1: Calculate 4% of $101,500<\/p>\n\n\n\n<p>$101,500 \u00d7 4% = $4,060<\/p>\n\n\n\n<p>Step 2: Remove this from the previous end-of-day balance<\/p>\n\n\n\n<p>$101,500 \u2212 $4,060 = <strong>$97,440<\/strong><\/p>\n\n\n\n<p>On the following trading day:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your equity must not fall below $97,440 at any time.<\/li>\n<\/ul>\n\n\n\n<p>You can see your maximum drawdown value and the time remaining to the daily reset in your Client Portal in Metric section. <\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Maximum Daily Drawdown is the maximum loss you are allowed to incur in a single trading day, including both closed (realised) and open (floating) P\/L. It is expressed as a percentage of the previous day\u2019s end-of-day balance and is recalculated every day at 21:00 UTC. At thePropTrade, the Daily Drawdown is balance-based, but it [&hellip;]<\/p>\n","protected":false},"author":774,"featured_media":0,"parent":10108,"menu_order":7,"comment_status":"closed","ping_status":"closed","template":"","doc_tag":[],"doc_badge":[],"class_list":["post-10119","docs","type-docs","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How is Maximum Daily drawdown calculated? - thePropTrade<\/title>\n<meta name=\"description\" content=\"Learn how thePropTrade\u2019s daily drawdown is calculated, how equity is monitored, and when a daily drawdown breach occurs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/persistent-cyan-ant.theproptrade.com\/?docs=instant-funding-faqs\/maximum-daily-drawdown-instant-funding\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How is Maximum Daily drawdown calculated?\" \/>\n<meta property=\"og:description\" content=\"Learn how thePropTrade\u2019s daily drawdown is calculated, how equity is monitored, and when a daily drawdown breach occurs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/persistent-cyan-ant.theproptrade.com\/?docs=instant-funding-faqs\/maximum-daily-drawdown-instant-funding\" \/>\n<meta property=\"og:site_name\" content=\"thePropTrade\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/thePropTradecom\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-13T10:46:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/persistent-cyan-ant.theproptrade.com\/wp-content\/uploads\/2024\/09\/Favicon.png\" \/>\n\t<meta property=\"og:image:width\" content=\"500\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:description\" content=\"Learn how thePropTrade\u2019s daily drawdown is calculated, how equity is monitored, and when a daily drawdown breach occurs.\" \/>\n<meta name=\"twitter:site\" content=\"@thePropTrade\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/persistent-cyan-ant.theproptrade.com\\\/?docs=instant-funding-faqs\\\/maximum-daily-drawdown-instant-funding\",\"url\":\"https:\\\/\\\/persistent-cyan-ant.theproptrade.com\\\/?docs=instant-funding-faqs\\\/maximum-daily-drawdown-instant-funding\",\"name\":\"How is Maximum Daily drawdown calculated? 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