Daily drawdown
Updated
Your daily drawdown is 2% of your balance at the start of the trading day. If you lose more than that in one day, the account is breached.
When the day resets
The trading day resets at 5:00 PM ET (New York time). Your limit for the next day is then set from your balance at that point.
Example
You start the day with $25,000, so you can lose up to $500 that day. If you end the day at $25,600, your limit for the next day is $512.