Understanding your daily drawdown is critical for surviving a prop firm challenge. Here is exactly how to calculate it on every major firm — then verify the current definition on each firm profile, starting with Topstep and Apex Trader Funding.
What Is Daily Drawdown?
Your daily loss limit is the maximum amount you can lose in a single trading day. If your P&L drops below this limit, your account is failed.
How Topstep Calculates Daily Loss
Topstep's current key rule is the Maximum Loss Limit. Some account paths also include a Daily Loss Limit. When a DLL applies, calculate it from the firm's stated daily reference point:
Daily Breach Level = Daily Reference Balance - Daily Loss Limit
