How do you calculate Daily Drawdown?
Daily drawdown is the maximum amount you can lose within 24hrs before getting disqualified.
The daily drawdown is calculated off BALANCE at the start of the day (5PM EST).
The Daily drawdown is usually a percentage based off your total BALANCE. For example, the competition has a starting balance of $100,000 and the daily loss limit is 8%. The maximum amount you can lose in a day is $8,000 of EQUITY.
In some cases, this number is a static value. For example, you start with $100,000 with 8% Daily drawdown. Even if you get to $200,000, you can only lose $8,000. Make sure you review the rules of the competition you are participating in to see how much the limit is and if it is static or not.