The maximum daily drawdown is set at 5% and is static, meaning it does not trail.

Example:

On a 100K Account, if at 5pm EST you have an open trade with a floating profit of $2,000, your account equity will be 102K. With a 5% daily drawdown, the equity cannot drop below $97,000 ($102,000 - $5,000 = $97,000) on the next trading day.