Example 1: You have a $4,900 account, and your daily drawdown limit is $250. If your demo equity reaches or falls below $4,650 (including unrealized P&L), you have breached the daily drawdown rule.
Example 2: You have a $5,000 account, and your daily drawdown limit is $250. Suppose you made some profits during the day, and your current equity is $5,200. Later, during the same day, there was a flash crash, and your demo equity reached or fell below $4,950 (including unrealized P&L). In this case, you have breached the daily drawdown rule.
Example 3:You have a $100,000 account, and your daily drawdown limit is $5,000. You open a trade and are $10,000 in unrealized profit (uPnL), making your current equity $110,000. Later, during the same day, there is a flash crash, and your position has an unrealized profit of $5,000, bringing your equity down to $105,000. In this case, you have breached the daily drawdown rule, as the drop from $110,000 to $105,000 exceeds the $5,000 allowed limit.