The Daily Loss Limit is 3% and resets each day at 5:00 PM Eastern Time. It is calculated using the higher of your account balance or equity at the reset. Your equity must remain above the resulting breach level throughout the following trading day.
Example: At the reset, your balance is $100,000 and your equity is $102,000. The limit is calculated using $102,000. Three percent is $3,060, making the daily breach level $98,940. Touching or falling below that equity level results in a hard breach. If you purchase the Balance Based Daily Drawdown add-on, only your balance at the reset is used (not equity as well). In the same example, the daily breach level would be $97,000.