Daily Drawdown: Step 1, Step 2 and funded account can have daily drawdown ranging from 4% to 6%. If you lose more than selected drawdown in a single day, the account is breached. Daily Drawdown resets at UTC 00:00.
Example 1
On a $50,000 account with 6% daily drawdown ($3,000). If your equity is $52,000 at UTC 00:00, your equity must not drop below $49,000 at any point during that day.
Example 2
On a $50,000 account with 6% daily drawdown ($3,000). If your equity is $54,000 at UTC 00:00, your equity must not drop below $51,000. If you lost only $2,000, you did not breach. For the next day, when daily drawdown resets at UTC 00:00 with equity of $52,000, daily drawdown floor is at $49,000. Once equity goes below $49,000, the account is failed.
Pass / Fail
Pass
Trader starts the day with $50,000 equity. Trade 1: −$500. Trade 2: +$1,000. Trade 3: −$250. Day-end equity: $50,250. Only 1.5% drawdown used — well within 6% limit.
Fail
Trader starts with $50,000. Trade 1: −$1,500. Trade 2: −$1,250. Equity dropped to $47,250 = 5.5% drawdown. Exceeds the 5% daily limit. Account breached.