How to Calculate Prop Firm Daily Drawdown: Step-by-Step
Understanding your daily drawdown is critical for surviving a prop firm challenge. Here is exactly how to calculate it on every major firm.
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
For example, if the daily reference balance is $100,000 and the DLL is $2,000, the daily breach level is $98,000.
Always verify whether the DLL is active on your specific account path before trading.
How Apex Calculates Daily Loss
Apex Trader Funding does not use a fixed daily loss limit on standard evaluations. The risk limit is the drawdown rule for the account you bought:
- EOD trailing: updates from end-of-day balances
- Intraday trailing: can update from intraday equity highs, including unrealized gains
Firm-by-Firm Daily Drawdown
| Firm | Daily Loss Type | Practical Note |
|---|---|---|
| Topstep | Path-dependent DLL plus MLL | Check whether DLL applies to your Combine/XFA path |
