Start with explicit assumptions

This is a calculation exercise, not a trading recommendation or passing forecast. Assume $100,000 of initial simulated capital and the same balance at the start of this day. Our invented rules allow $5,000 of daily loss and $10,000 of fixed overall loss, including open-position results and separate costs. Replace these assumptions with your selected program’s rules before relying on the calculation.

The $2,900 a balance-only check misses

Suppose closed trades lost $1,800, open trades show a $2,700 loss, and commissions plus swaps add $200 that has not already been counted. Equity is $95,300. Only $300 remains above the $95,000 daily threshold. If your platform already includes those costs in its balance, do not subtract the $200 twice.

One limit can fail while the other holds

An additional $400 loss takes equity to $94,900. That remains above the fixed $90,000 overall threshold but falls $100 below the daily threshold. Under our assumptions, the daily rule has been breached. A later price recovery should not be entered in your worksheet as if it erased an earlier breach.

What to replace with actual rules

FTMO’s objectives distinguish static and trailing calculations between products. Record the reset timezone, reference balance, included costs and any upward movement of the threshold for your exact program. Midnight does not remove the risk in an open position. Do not combine the daily rule of one product with the overall rule of another.

Why midnight can change the buffer without a price move

Change one assumption in the exercise. Start with $100,000 and an invented $5,000 daily allowance. Closed trades have earned $3,000 today, while open positions show a $4,000 loss. Balance is $103,000 and equity is $99,000; assume costs are already included. There is $4,000 above today’s $95,000 threshold.

If the new day’s threshold is defined as the midnight balance minus $5,000, it rises to $98,000. With prices and equity unchanged, the buffer shrinks to $1,000. Yesterday’s realized gains no longer enter the new daily calculation in the same way. FTMO describes a midnight CE(S)T reset. Check the applicable product’s server timezone and daylight saving rather than using midnight on your own wall clock.

Static versus trailing: the same equity, different floors

For overall loss, ask what moves the floor. This separate hypothetical comparison starts at $100,000 with a $10,000 loss amount. A static floor stays at $90,000. Under an invented highest-end-of-day-balance-minus-$10,000 rule, a highest daily closing balance of $106,000 produces a $96,000 floor. A later lower closing balance does not erase that high-water mark.

At $96,500 equity, the distance to these overall floors is $6,500 and $500 respectively. This compares only the overall rule; it does not establish compliance with today’s daily limit. FTMO’s 1-Step explanation uses end-of-day trailing. For another provider, separately establish whether it tracks intraday equity or has a level where the floor stops rising.

Three lines to keep beside the balance

Keep current equity, today’s daily floor and the current overall floor on separate lines, using readings from the same moment. Subtract each floor from equity; the smaller distance identifies the closer limit. This is a way to read the rule, not permission to lose that amount. Available margin is a different figure from the distance to a loss threshold.

In the earlier $300-buffer example, another $80 of costs not yet counted leaves $220. Do not subtract costs again if they are already included. When querying a discrepancy, retain platform time, balance, equity, open positions and fee entries together. A single closing screenshot cannot explain whether a limit was crossed earlier during the day.