You cannot lose 10% or more of your account's initial balance. If you generate profit above your initial Balance, your total loss limit will increase proportionally.
Total Loss Limit $ = Initial Balance - Realized & Unrealized P/L
Example #1: With a $100,000 account, your total loss limit is 10% or $10,000. If you end a day with a $1,000 loss, your total loss limit will decrease to $9,000.
Example #2: With a $100,000 account, your total loss limit is 10% or $10,000. If you end a day with a $1,000 profit, your total loss limit will increase to $11,000.