NOVA Daily Loss Limit Rule
The Daily Loss Limit (DLL) defines the maximum loss an account may sustain within a single trading day.
This rule applies to both:
Evaluation (Challenge) Accounts
Funded Accounts
Daily Loss Limit by Stage
Account Stage | Daily Loss Limit |
Evaluation | 3% |
Funded | 3% |
The limit is calculated from the daily reference balance or equity.
How the Daily Loss Limit Works
The trading day resets at 5:00 PM EST
At the start of each trading day, the system records the highest balance or equity
The DLL is set at 3% below that level
Both balance and equity are monitored in real time
Floating losses count toward the DLL
If balance or equity touches the DLL level → account breach
Daily Reset Behavior
Each new trading day:
A new reference level is established
Profitable days increase the allowable loss range
Losing days reduce the next day’s loss buffer
Example
A trader starts the day with:
Highest balance or equity: $100,000
Daily Loss Limit:
3% of $100,000 = $3,000
Breach level = $97,000
If equity drops to $97,000 at any point during the day:
The account is breached immediately
Recovery above the level does not undo the breach.
Evaluation vs Funded Behavior
Feature | Evaluation | Funded |
DLL | 3% | 3% |
Reset Time | 5:00 PM EST | 5:00 PM EST |
Breach Result | Reset eligible | Account closure |
Important Notes
DLL is based on intraday movement, not daily close
Floating losses count
Breach occurs when level is touched
DLL applies independently from Max Drawdown
Evaluation breaches may be reset for free