Two of the most important concepts in any evaluation model are the daily loss limit and the maximum drawdown limit. Traders often read both, assume they mean the same thing, and then fail a challenge because they did not manage intraday risk properly.
The daily loss limit is the maximum amount you can lose in a single server day. The max drawdown is the maximum total loss allowed relative to the account’s starting balance for the phase. One protects the day; the other protects the account.
A disciplined trader plans around both. That usually means defining position size before entry, knowing how open equity affects the day, and stopping early when conditions are poor. It also means treating evaluation rules as part of the strategy, not as something to memorize after purchase.
If you are comparing challenge firms, look for public rule explanations that make these limits easy to understand before checkout.