The maximum daily drawdown is set at 4% and is static, meaning it does not trail.

Example 1:

On a 100K Account, if at 5pm EST you have an open trade with a floating profit of $2,000, your account equity will be 102K. With a 4% daily drawdown, the equity cannot drop below $98,000 ($102,000 - $4,000 = $98,000) on the next trading day.

Example 2: On the first day, you start with 100k account. Your daily drawdown is 4% meaning your available daily dd of $4,000 and daily limit would be at 96k.

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Example 3:
If there are no open trades at 5pm EST, the daily drawdown will be 4% of whatever the closed balance is.

Daily drawdown will reset each day at 5PM EST.