How do you calculate the 5% Daily Loss Limit in 2 step prudent challenge?

The Daily Loss Limit is the maximum amount your account can lose in a single day. We calculate the Daily Loss Limit using the balance from the previous day, which resets at 5 PM EST. Unlike other firms, we don't base our calculations on the previous day's equity. This balance-only model allows you to maximize your gains without the risk of losing your account. The Daily Stop is added to your account as your balance increases.

Example 1: If your balance at the end of the previous day (5 PM EST) was $100,000, your account would exceed the daily stop loss limit if your equity dropped to $95,000 during the day.

Example 2: If your floating equity is +$6,000 on a $100,000 account, your maximum loss for the new day (5 PM EST) is still based on your previous day's balance of $100,000. Therefore, your daily loss limit would remain at $95,000.

Example 3: If you make a $5,000 profit on a $100,000 account, your maximum daily loss for the new day (5 PM EST) is based on the previous day's balance of $105,000. Consequently, your daily loss limit would be $99,750.

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