For traders participating in the Evaluation, Express, and Stellar 2-Step challenges, a daily drawdown of up to 5% of their initial account balance is permitted. However, for traders enrolled in the Stellar 1-Step challenge, the allowable daily drawdown is limited to 3% of their initial account balance.

To calculate the daily loss limit, you can use the following formula: Daily loss limit = Your Last day's Balance - Today's Balance / Equity. **Another thing to keep in mind is that your daily loss limit will be reset at midnight according to the server time.**

Let's consider an example to illustrate this calculation. Suppose you have purchased an Evaluation 100K account. Here's how the calculation works:

**Case 01:**

For example, if you have a $100,000 account, the maximum daily loss limit is $5,000, and you are not allowed to lose more than $5,000 on any given day. Suppose you have lost a total of $3000 in your closed trades. In such a case, you cannot lose more than $2000, including floating losses. Note that swap and commission rates are included in this calculation. It will be considered a violation if you lose more than $2,000.

**Case 02:**

Similarly, let's say you gained $5,000 in profit in a single day. In such case, you will be allowed to lose $5,000 (your profit) + $5,000 (your daily loss limit) = $10,000. Losing more than $10,000 (in both open and closed positions) will be considered a violation.

**Case 03:**

Let's look at another case. Assume, like in the previous scenario, that you lost $3000 in a single day. Then you take a trade that is now running at a floating loss of -$2500, but when you close it, it becomes positive $500. If this occurs, according to our calculations, you will have exceeded your daily loss limit the instant your loss exceeds $5000.

**Case 04:**

Another thing to keep in mind is that your daily loss limit will be reset at midnight according to the server time. For example, suppose you have gained a $2000 profit in a closed trade, and trade is currently running at a $6,000 floating loss. In this case, you still have not violated your daily drawdown for the day because your current daily loss is +$2000 - $6000= -$4000. However, if you hold this one trade with a floating loss of $6,000 after midnight, you will breach the daily loss limit because a new day begins after midnight, and you have already lost $6000, which is more than your daily loss limit of $5000