Daily loss vs maximum drawdown

The percentages may look similar. The way they are calculated can change everything.

FXSort editorial · 02 November 2026

Two limits, two questions

A daily loss rule limits losses over a defined day. A maximum loss rule establishes an overall limit. Their exact calculation depends on the program, and the reset timezone can be as important as the percentage.

Static and trailing floors

A static maximum-loss floor stays anchored to the initial account amount. A trailing floor moves according to a balance or equity rule. Intraday and end-of-day trailing rules can behave differently, so read when the floor updates.

A simple static example

With a $100,000 initial account and a 10% static maximum-loss limit, the reference floor is $90,000. That example does not calculate a daily limit or account for a provider’s breach convention.

Questions to ask

• Does floating profit and loss count?
• Which timezone defines the trading day?
• Are commissions and swaps included?
• Does touching the floor breach the rule?
• Do conditions change after evaluation?

See FTMO’s official calculation explanations for one program-specific example.