Track the provider’s reference value, server clock and equity test. Midnight does not remove open risk or the overall loss limit.
Daily loss is a calculation, not a fresh wallet
A daily loss rule limits the account according to a defined reference and clock. It is not a new cash allowance deposited every morning. A reset may change the reference used to test the account, while open positions, trading costs and the overall loss floor remain relevant.
Some products use a balance reference; others include equity or the higher of two values. FTMO and Alpha Capital publish their own definitions, which illustrates why one provider’s calculator should not be applied to every firm. Start with the formula for the exact program listed in the directory.
Separate closed results from floating results
Consider an entirely hypothetical $10,000 account with a daily floor set $500 below the balance recorded at reset. If that balance is $10,200, the simplified floor becomes $9,700. Open positions with a $400 floating loss would put equity at $9,800 before any additional costs, leaving only $100 above the floor.
The point is the relationship between balance, equity and reference time. A floating profit shown earlier in the evening is not a permanent safety buffer. When documenting a rule, include the treatment of swaps, commissions and open profit or loss. Small charges can matter when equity is close to a threshold.
Translate server time into your routine
Find the provider’s specified server time and its treatment of daylight-saving changes. Your phone’s midnight, chart timezone and the firm’s trading-day boundary may differ. Put the relevant boundary in your calendar and confirm the current conversion when clock changes occur.
For an overnight position, model the account immediately before and immediately after reset. Use the same position and price to isolate what the reference change does. Then consider an adverse price move and applicable overnight costs. This makes the hidden assumption visible: a strategy can be unchanged while its remaining contractual room changes at a particular time.
Check the tighter limit and record the answer
Daily and overall constraints operate together. Calculate each floor independently, then compare them with current equity. If the overall floor is closer, the daily reset does not restore room below it. Our static and trailing drawdown guide explains why an overall threshold may also have moved.
Before choosing a program, ask support for an overnight worked example using the intended account type. Save the answer with the rule URL and date. If a summary and an agreement seem inconsistent, resolve that discrepancy before relying on a spreadsheet. A precise rule definition is more useful than an optimistic interpretation of “daily reset.”
Sources & further reading
Educational research. Examples are hypothetical. Provider terms and regional availability can change. Suggest a correction.
Put the comparison into practice
Open the directory, choose a category and select up to three providers to compare.
Compare providers →