Daily drawdown is the loss measured within a single day. Firms often cap it so one bad day cannot blow up an account. This is informational unless you set up real rules.
📊Metric insight
5%Daily loss limit$5,000 on a $100,000 account
The daily drawdown is a hard floor for a single day. Hit it and the day — sometimes the account — is over, regardless of how the trades "felt".
⚠️Warning
The classic blow-up is chasing back a loss as you near the daily limit. The rule exists precisely to stop that spiral — treat reaching it as a full stop, not a challenge.
