During both the Evaluation and Simulated Funded Phases, traders are expected to follow a virtual maximum daily loss (drawdown) limit of 3% based on their previous day's ending virtual balance or simulated equity (whichever is higher). This limit will be recalculated daily at 5:00 pm EST, taking into consideration the higher value between the trader's ending day virtual balance and simulated equity.

If a trader's account begins with $100,000 virtual funds, their virtual maximum daily loss will be capped at $3,000. If their ending virtual balance or simulated equity (whichever is higher) for the day amounts to $105,000, then their virtual daily loss limit equity level will be set at $102,000—the point at which their account would breach the limit.

It's important to note that any simulated profits earned during the trading day will not impact the trader's virtual daily loss limit equity level. Instead, these simulated profits will serve as a buffer for that particular day.