Quick answer: 4% of your starting balance, monitored on equity, reset at 5pm EDT. On a $100,000 account that's $4,000.
Use the live breach level shown in your Trader Area Metrics — don't assume you can always lose the full amount from current equity.
Balance vs equity — the distinction that causes most breaches
Balance is the result of closed trades. Equity is balance plus the floating result of open positions. Breach checks use equity. A closed balance of $100,500 with a floating loss of −$1,000 is $99,500 of equity — and it's the $99,500 that's assessed.
What the 5pm EDT reset does and doesn't do
It begins the next daily cycle. It does not reactivate a breached account, erase closed losses, or move a maximum drawdown level. Rollover is also a one-hour window of widened spreads — see Market Rollover Explained.
Common questions
Can an open trade breach the daily limit? Yes — floating loss moves equity below the level before you close.
My stop loss was above the breach level. Why did I still breach? Equity moves with spread, slippage, commissions, swaps and multiple open positions. A stop order doesn't guarantee equity never crosses a breach level before or during execution.
See also: Maximum Drawdown – Speedy (Trailing) · Reading Your Trader Area