At 10-Four, the Daily Loss Limit (DLL) exists for one reason: to protect traders from losing control during a single trading session.
Every trader has bad days. The DLL is designed to prevent one emotional or volatile session from wiping out your account. It resets every trading day and acts as a safety mechanism, not a punishment.
This is a soft protection rule created by traders, for traders.
How the Daily Loss Limit Works
The Daily Loss Limit is calculated using your previous trading day’s closing balance, not your starting balance.
It typically ranges between 2.0% and 2.5% depending on the program.
Daily Loss Limits by Account Type
Standard Challenge & Funded Accounts (2.5%)
Account Size | Daily Loss Limit |
$25,000 | $625 |
$50,000 | $1,250 |
$100,000 | $2,500 |
$150,000 | $3,750 |
Pro Evaluation Accounts (2.0%)
Account Size | Daily Loss Limit |
$25,000 | $500 |
$50,000 | $1,000 |
$100,000 | $2,000 |
$150,000 | $3,000 |
How It Is Calculated (Simple Example)
Let’s break it down clearly.
Item | Value |
Previous Day Close | $26,000 |
Daily Loss Limit | $625 |
Protection Level | $25,375 |
Calculation:
$26,000 – $625 = $25,375
If your account equity touches $25,375 during the day, trading will automatically pause.
That’s it.
No penalties. No account loss.
Just protection.
What Happens If You Hit the Daily Loss Limit?
Event | What It Means for You |
DLL Triggered | Trading pauses for the rest of the day |
Next Trading Day | You start fresh |
Overall Max Loss Limit Hit | Account fails |
The DLL is a soft breach.
It does not close your account.
It simply protects you from going further that day.
Why We Use It
Trading is psychological.
After a few losing trades, it’s easy to:
• Revenge trade
• Increase position size
• Abandon your plan
• Try to “make it back”
The Daily Loss Limit exists to interrupt that cycle.
It forces discipline when emotions are high.
It protects your capital.
It protects your opportunity.
It protects your progress.
Important Risk Clarification
The DLL is not a stop-loss order.
Because it is a backend protection tool, it may trigger:
• Slightly earlier
• Slightly later
• At a different execution price due to volatility
You should always use proper stop-loss orders.
The DLL is your emergency brake — not your primary risk tool.
At 10-Four, we are traders ourselves.
We know what tilt feels like.
We know how one bad day can spiral.
This rule exists to keep you in the game long enough to become consistent.
It’s not there to restrict you.
It’s there to protect you.