The maximum daily loss is set at 4% and is static, meaning it is not adjustable.

Example:

In a $100,000 account, if at 5 p.m. EST you have an open trade with a floating profit of $2,000, your capital will be $102,000. With a daily drawdown of 4%, the capital cannot fall below $98,080 ($102,000 - $4,000 = $98,000) on the next trading day.