What is Max Daily Loss (daily drawdown) and how is it calculated?

TL;DR

Max Daily Loss is your daily equity stop. It’s equity-based, includes floating PnL + costs, and resets at 16:00 CT. Touch it = hard breach. Max daily drawdown in PropXP does not trail intraday.

Important: In PropXP there is no trailing drawdown: Max daily drawdown does not trail intraday (valid for all accounts, including Instant Funding), it is set at the start of the day and it remains the same for the whole day.

How it works: No Trailing Daily Drawdown for all PropXP accounts

1. At 16:00 CT, your “day start equity” is set.
2. Your daily loss buffer = (Daily % × day start equity).
3. If at any moment your equity drops below day start equity − buffer, you breach.
4. Equity includes open trades (floating) and costs (commissions, swaps; spreads/slippage impact your equity too).

Common gotchas

• “But I would have closed green later” doesn’t matter. Breaches are moment-in-time.
• If you’re trading near the limit, spread + commission can finish you.
• The reset is 16:00 CT, not your laptop time.
• If you have open trades at reset, your day start equity reflects that (so don’t “roll” big floating drawdown into a fresh day).
• Give yourself a buffer. “I’ll manage it on the fly” kills accounts.

Values table per account type

Example

Day start equity on two challenges are both = $52,000.

• Two-Phase daily limit 5% → buffer $2,600 → breach line $49,400.
• One-Phase/Instant Funding daily limit 3% → buffer $1,560 → breach line $50,440.

Related FAQs

• What time does the trading day reset (timezone) and why it matters
• Do spreads/commissions/swaps count toward drawdown?
• Slippage & micro-breaches: “I only went over by $0.01”
• What is Max Loss (overall drawdown) and is it static or trailing?
• Do performance rewards impact my daily drawdown?