What is measured
Equity, not balance — measured against your equity at the daily reset time. An open losing position counts immediately, not only when it closes.
What happens when it trips
- New execution stops. Incoming signals are logged and marked blocked, naming the limit.
- Open positions stay open, and their stops and targets are still managed. A drawdown limit is not a panic close.
- You get notified through whichever channels you enabled.
- The daily limit resets automatically at your configured reset time. The total drawdown limit needs a manual reset — that friction is deliberate.
Before you reset
- Look at which signals contributed and how large they were.
- If one position dominates, that usually points at a symbol mapping or contract-spec problem, not at the market.
- Check Source Analytics: one bad day, or a trend?
Resetting before you know the cause just schedules the same day again.
Prop accounts
Set your reset time to the firm's server reset, not your local midnight, and set your limit meaningfully below theirs. A mismatch is how a compliant day becomes a breach.