Daily loss vs max drawdown: the difference that costs you the account (2026)

Two different limits, two different ways to lose the account. If you don't have the difference clear, it eventually catches you off guard.

Daily loss: the day's limit

How much you can lose in a single session. Resets daily. A $100,000 account at 5% = $5,000. If your equity drops that from the day's start, it's gone.

Max drawdown: the total limit

The absolute floor of the whole account. Never resets. $100,000 at 10% = $10,000.

Static vs trailing: the trap

• Static: fixed floor. As you win you move away from it. The friendliest (FTMO, FundedNext).
• Trailing: the floor follows you up. You can blow up while green. Typical of futures (Apex, Topstep).

How not to confuse them

Look at both in dollars. If your firm uses trailing, know where your floor is right now. PropGuard computes both live and stops you on whichever is closer.

See also: all firms · comparison.

Indicative info, not financial advice. Official rules are defined by each prop firm in its ToS.