Maximum drawdown is the maximum your account can drawdown before you would hard breach your account. When you open the account, your Max Trailing Drawdown is set at 8% of your starting balance. This 8% is static and does not trail.
Example: if your prior day’s end of day balance (5pm EST) was $100,000, your account would violate the daily stop loss limit if your equity reached $95,000 during the day. If your floating equity is +$5,000 on a $100,000 account, your new-day (5pm EST) max loss is based on your balance from the previous day ($100,000). So, your daily loss limit would still be $95,000.