How is a daily drawdown calculated?#
A daily limit needs three settings, and the same percentage can mean very different room depending on them. Read all three in any firm's rules.
- The reference: the balance at the start of the day, or the higher of balance and equity at that moment.
- The reset time: a fixed server or UTC time when the reference is taken again.
- Whether it trails intraday: a trailing daily drawdown measures from the day's highest equity, so a morning gain also raises that day's limit.
It always sits on top of an overall limit, so an account with a daily drawdown has two limits to track at once.
Daily drawdown vs trailing drawdown#
| Daily drawdown | Fullport's trailing max drawdown | |
|---|---|---|
| Reference | This day's opening balance or equity | Highest realized balance at a 00:00 UTC close |
| Resets | Every day | Never; ratchets up only, then locks at breakeven |
| Room | A fixed slice per day | 4% of the starting size in total |
| Measured on | Today's change | Live equity against the floor |
Swipe or scroll to compare all columns.
A daily limit caps any single day, while a trailing drawdown caps the total across the life of the account. See trailing drawdown, and daily vs trailing drawdown for both with numbers.
Why Fullport has no daily drawdown#
Memecoins can swing hard within a day and settle by the close. With one overall floor and no daily cap, an intraday swing that recovers is simply part of the day.
What does a day without a daily limit look like?
On a $25,000 account, a day closes at $25,800, so the floor ratchets to $24,800. Next day an open position pulls equity to $24,900, $900 below the open, then recovers.
There is no daily limit to watch, and equity stayed above the $24,800 floor, so the day simply carries on. Sizing from the distance to the floor is what keeps that room comfortable.
For prop traders used to a daily cap, Fullport offers one floor, no daily drawdown, no time limit, one step and a 24/7 market. The no-daily-drawdown page covers it in full, the rules give every number, and the position size calculator helps you size from the floor.
Quick answers
- What is the difference between daily drawdown and trailing drawdown?
- A daily drawdown limits how far an account can fall within one trading day and resets each day. A trailing drawdown is an overall floor that follows your highest balance upward. Fullport uses only the trailing floor, at 4% of the starting balance.
- Why do memecoin traders prefer no daily drawdown?
- Because memecoin positions often swing hard within a single day before settling. Without a daily cap, an intraday dip that recovers by the close is just part of the day; only the single overall floor applies.
- How is a daily drawdown calculated?
- A daily drawdown is measured from a reference taken at the daily reset, either the opening balance or the higher of balance and equity. The account must stay within the set amount below that reference until the next reset.
- Do prop firms without a daily drawdown exist?
- Yes. Some firms use only an overall loss limit. Fullport has no daily drawdown at all: its single limit is a 4% floor that trails at the UTC day close and locks at breakeven.