No, the daily loss limit (drawdown) is always calculated based on the account balance at the beginning of the trading day, not the equity.

Example:

• If the balance at the beginning of the trading day is $10,000 and the equity is $10,300:
  • The drawdown will be calculated based on the $10,000 balance.
  • The daily loss limit would be $9,500 (5% of $10,000).

Regardless of the equity amount, the daily drawdown is determined by the balance.