The daily max loss on all 1-Stage Accounts is 5%, meaning a trader cannot lose more than 5% of the previous day's account balance. All account balances reset at 5 pm EST.
At Lark Funding, we DO NOT calculate your daily max loss based on your previous day's equity. This allows the trader to compound their account without stressing about normal, swing trading fluctuations.
Example: If the previous day’s account balance (5pm EST) was $100,000, the 5% daily loss limit will be breached if your equity reaches $95,000 during the day.
If your floating equity is +$8,000 on our $100,000 account, your new-day (5pm EST) max loss will still be $95,000 as it was floating equity, and your account balance had not changed.