The Daily Loss Limit (DLL) defines the maximum loss an account may sustain within a single trading day. On NOVA accounts, this rule applies to Funded accounts only.
In short: No daily loss limit during the evaluation. Funded accounts have a 3% DLL, measured from the highest balance or equity at the start of each trading day (5:00 PM EST). Touching the level closes the account.
Evaluation vs Funded
Feature | Evaluation | Funded |
Daily Loss Limit | None | 3% |
Reset time | 5:00 PM EST | 5:00 PM EST |
Breach result | Reset eligible | Account closure (hard breach) |
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, the account is breached.
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
Item | Value |
Highest balance or equity at the start of the day | $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.
Important notes
DLL is based on intraday movement, not daily close.
Floating losses count.
A breach occurs when the level is touched.
DLL applies independently from Max Drawdown.
Evaluation breaches may be reset for free.