The maximum daily loss limit is calculated as 5% of the starting balance for each trading day. This calculation is based on the account balance at the close of the daily candle on broker time (00:00 GMT+2).

**For example**, if your account balance is $100,000, and your equity at the daily candle close is $101,000, your maximum daily risk for the following day will be 5% of the starting balance, which is $5,000. This means the minimum equity for that day would be $95,000.

It's important to note that open equity carried over from the previous trading day (e.g., +$1,000 floating) is not considered in the maximum daily loss calculation. However, if you have carried over an open trade with a floating loss (e.g., -$1,000), the maximum daily loss of $5,000 would be reduced by the floating loss, resulting in $4,000 remaining as the maximum daily loss for that day. If the minimum equity limit is reached, all trades will be automatically closed by the system, leading to the account's closure.