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Daily Drawdown Explaind

A full explanation of how Daily Drawdown works

Written by Oliver

What Is Daily Drawdown?

The Daily Drawdown is a daily risk limit designed to prevent excessive losses within a single trading day.

Unlike the EOD Trailing Drawdown (which is evaluated at the end of the day based on account balance), the Daily Drawdown is an Intraday Limit, which means You do not need to close your positions for a violation to occur. If your equity falls below the Daily Drawdown floor at any moment during active market hours, the limit is breached instantly.

All Daily Drawdowns at Solo Clash are considered hard breaches, meaning you lose your account for hitting the drawdown limit, even if the Max Drawdown has not been reached.

Drawdown Thresholds

The Daily Drawdown threshold is always set to exactly half (50%) of your account's total Maximum Drawdown limit.

Example:

  • Account Size: Liquid $50,000

  • Max Drawdown (4%): $2,000 → EOD Floor starts at $48,000

  • Daily Drawdown (2% - half of Max DD): $1,000 limit per day

  • If your day starts at $50,000, your floating equity must never drop below $49,000 at any point during that day.

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