What daily drawdown is
Daily drawdown is the most your account may lose within one trading day. Cross the floor and the account breaches, even if the day would have closed in profit.
The percentage is the easy part. The floor it produces depends on two choices a pricing card does not show: the anchor (the number the floor is set from at each reset) and the base (whether the percentage is a share of your starting balance or of that anchor). The loss itself is measured on equity at the firms compared here, so open trades count at their live value.
The three anchor models
| Model | Floor at each reset | Moves during the day |
|---|---|---|
| Previous reset balance | Your balance at the reset, minus the limit | No |
| Higher of balance or equity | Whichever was higher at the reset, minus the limit | No, but open profit at the reset lifts it |
| Starting balance | Your starting balance, minus the limit, every day | Never |
Formula
previous balance: floor = balance at reset − limit
higher of the two: floor = max(balance, equity) at reset − limit
starting balance: floor = starting balance − limit
One example, three models
A $10,000 account with a 5% daily limit ($500). Day 1 closes with the balance at $10,400, and an open trade is $300 in profit at the reset, so equity is $10,700. On day 2 that trade gives its profit back and closes flat, and a new trade dips $250. Lowest equity on day 2: $10,150.
| Model | Day 2 floor | Lowest equity $10,150 |
|---|---|---|
| Previous reset balance | $9,900 | $250 above the floor |
| Higher of balance or equity | $10,200 | Breached, $50 below |
| Starting balance | $9,500 | $650 above the floor |
The same day, the same trades: a breach under one model, comfortable room under the other two.
At FundedTick
The daily floor is 6% below your balance at the last reset on the two-step (2% on the one-step). Open profit at the reset does not raise it. In this example the two-step floor is $10,400 − $624 = $9,776, and nothing moves it until the next reset.
Overnight carry
A position held through the reset carries its open loss into the new day. Under a balance anchor the new floor is set from balance, which does not include that open loss, so the loss already uses up part of the new day’s room the moment the day turns.
Example: balance $10,000, one trade $400 down at the reset. With a 5% limit the new floor is $9,500; equity is $9,600, so the whole of day 2 has $100 of room. At FundedTick on the two-step the floor is $9,400, leaving $200.
Why a green day can still breach
The floor is checked while trades are open, not at the close. A day that dips through the floor at 10:00 and closes up at 17:00 breached at 10:00. It is a recurring complaint on trader forums, and it is how the rule works wherever it is measured on equity.
FundedTick evaluates every balance and equity event as it lands, so the floor is enforced on the tick that crosses it, the same way a pass confirms on the tick that earns it.
How named firms state it
Of the eight firms checked, four set the floor from the higher of balance or equity at the reset, three from the balance, and one from its start-of-day level. The limit is a share of the starting balance at some and a share of the anchor itself at others, which moves the floor again.
| Firm (program) | Floor set from | Limit | Reset, as the firm states it |
|---|---|---|---|
| FTMO (2-Step) | Balance at the reset | 5% of initial capital | 00:00 CE(S)T |
| FXIFY (Two Phase) | Previous day’s closing balance | 4% | 5PM EST |
| Alpha Capital (Pro 8%) | Previous day’s balance | 4% | 00:00 GMT+3 |
| FundedNext (Stellar 2-Step) | Start-of-day level (balance or equity not stated) | 5% of initial balance | 00:00 server time, GMT+2 (GMT+3 in summer) |
| Blue Guardian (2 Step Standard) | Higher of balance or equity | 4% of initial balance | 5pm EST |
| FundingPips (2 Step Standard) | Higher of opening balance or equity | 5% of that higher value | 00:00 platform time (UTC+3) |
| Maven (2-Step) | Higher of equity or balance | 4% of that higher value | 00:00 UTC |
| The5ers (High Stakes) | Higher of balance or equity | 5% | 00:00 server time (UTC+3) |
| FundedTick | Balance at the last reset | 6% two-step, 2% one-step, of that balance | The countdown in your trader panel |
Each row is taken from the firm’s own rule or help page on the date at the top of this guide; a blank base means the firm states the percentage without saying what it is a share of. Firms change their rules. Check the linked page before you buy.