Blog / Rule explainer
How the daily loss floor moves
The floor resets at 00:00 UTC from the higher of balance and equity. Here is what that means for a winning day, a losing day and an open position.
Every evaluation has two loss limits. The max loss limit is fixed: on Classic 1-Step it is the starting balance minus 8%, and it never moves. The daily loss limit is the one that moves, and it moves once a day.
The anchor
At 00:00 UTC the engine takes the higher of your balance and your equity. That number is the day's anchor. The daily floor is the anchor minus 4% of the starting balance, which on a 10K account is $400 of room.
The room is a share of the starting balance, not of the anchor, so it is the same amount every day: it does not grow after a good week or shrink after a bad one.
After a winning day
The anchor rises with the balance, so the floor rises too. You keep the same amount of room, measured from a higher point. Profit you made yesterday is not room you can lose today.
After a losing day
The anchor falls with the balance, and the daily floor falls with it. After a few losing days it can sit below the max-loss floor; from then on the max-loss floor is the one that binds, because equity must stay above both. The dashboard shows the room left to each floor.
With a position open at the reset
The anchor uses equity as well as balance. If you hold a winning position through 00:00 UTC, the anchor includes that open profit, and giving it back the next day counts against the new day's room. Closing before the reset does not avoid this; it only changes which number sets the anchor.
Equal is allowed
The check is strict: equity below the floor is a breach, equity exactly at the floor is not. Every check uses the composite mark price, never a single exchange's last trade.
Try your own sequence of days in the drawdown simulator, which runs the same rules functions as the engine.
Related
- Daily drawdown vs max drawdownTwo loss floors, measured differently: one resets every day, one never moves. Two worked examples show which one ends an account, and when.
- Daily loss limitThe daily loss limit is the most equity may fall in one trading day, measured from that day's anchor; crossing the floor ends the account.
- Drawdown simulator