NOVA Daily Loss Limit Rule
The Daily Loss Limit (DLL) defines the maximum loss an account may sustain within a single trading day.
This rule applies to: Funded Accounts
Daily Loss Limit by Stage
| Account Stage | Daily Loss Limit |
|---|---|
| Evaluation | 0% |
| Funded | 3% |
The limit is calculated from the daily reference balance or equity.
How the Daily Loss Limit Works
- The trading day resets at 5:00 PM EST
- At the start of each trading day, the system records the highest balance or equity
- The DLL is set at 3% below that level
- Both balance and equity are monitored in real time
- Floating losses count toward the DLL
If balance or equity touches the DLL level → account breach
Daily Reset Behavior
Each new trading day:
- A new reference level is established
- Profitable days increase the allowable loss range
- Losing days reduce the next day’s loss buffer
Example
A trader starts the day with:
| Item | Amount |
|---|---|
| Highest balance or equity | $100,000 |
Daily Loss Limit:
3% of $100,000 = $3,000
Breach level = $97,000
Breach level = $97,000
If equity drops to $97,000 at any point during the day:
- The account is breached immediately
Recovery above the level does not undo the breach.
Evaluation vs Funded Behavior
| Feature | Evaluation | Funded |
|---|---|---|
| DLL | 0% | 3% |
| Reset Time | 5:00 PM EST | 5:00 PM EST |
| Breach Result | Reset eligible | Account closure |
Important Notes
Important Notes
- DLL is based on intraday movement, not daily close
- Floating losses count
- Breach occurs when level is touched
- DLL applies independently from Max Drawdown
- Evaluation breaches may be reset for free