> For the complete documentation index, see [llms.txt](https://docs.supertrade.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.supertrade.com/rulebook/risk-management-rules/daily-drawdown.md).

# Daily Drawdown

Daily Drawdown (Daily Loss Limit) is the maximum amount you can lose in a single trading day. If your equity at any point of the trading day drops below this limit - account will be breached and failed. 

{% hint style="danger" %}
Breaching drawdown = **automatic position closure** and **account pause**. These rules are strict and cannot be bypassed or reset.
{% endhint %}

#### How is it calculated?

* Daily drawdown limit is *calculated using your equity at the end of day*. It resets daily at 00:00 UTC or after successful payout. 
* At 00:00 UTC, we check your equity and subtract % of the account equity from that value to set the Daily Drawdown Limit for the next trading day.

{% hint style="info" %}
**Example:** \
For a fresh new $1,000 account with 3% daily drawdown, the daily drawdown limit is $30. If your account balance or equity drops below $970, your account will be breached.

After $100 profits in trading, your equity is $1,100. At 00:00 UTC, daily drawdown limit is recalculated ($1,100 \* 3% = $33). If your account balance or equity drops below $1,067, your account will be breached.

After a $50 payout, your equity is $1,050 and daily drawdown limit is recalculated again ($1,050 \* 3% = $31.5). If your account balance or equity drops below $1,018.5, your account will be breached.
{% endhint %}


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.supertrade.com/rulebook/risk-management-rules/daily-drawdown.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.