Daily Drawdown
A Daily Drawdown is the maximum amount your account equity may fall during a trading day.
It resets at 00:00 UTC.
Because it is equity-based, open losses count.
Example: On a $50,000 account with 3% daily drawdown ($1,500), if your equity is $52,000 at UTC 0000, your equity must not fall below $50,500 at any point during that day.
EoD Maximum Drawdown
The EoD Maximum Drawdown follows the highest qualifying equity/balance recorded at the daily review.
It can:
Move upward
Never move downward
Eventually stop trailing
Example 2: Same account. Over time your equity reaches $108,000 at end of day, a new reference high. The ceiling for the floor is +2% of initial balance = $102,000. The drawdown floor locks at $102,000 and never trails higher. If your equity later drops to $101,990, which is below the $102,000 floor, then account is breached.
Important
An account can breach a drawdown rule without closing the losing trade because unrealized P&L is included.