Daily Loss Limits
Contents
Personal Daily Loss Limit
A Personal Daily Loss Limit acts as a risk management tool for traders, defining the maximum allowable financial loss within a single trading day. This predetermined threshold serves to protect the trader's capital from significant downturns in market conditions, ensuring effective risk management and maintaining trading discipline.
How to Enable a Personal Daily Loss Limit
Apply a personal daily loss limit (PDLL) on net profit and loss calculated in real-time. To enable the PDLL, you must enter a Personal Daily Loss Limit (PDLL) value and then select a PDLL Action:
If Do Nothing is selected, then the PDLL functionality is disabled.
If Liquidate is selected, then upon reaching the PDLL, all positions in the account will be liquidated. The action will then be reset to Do Nothing.
If Liquidate and Block is selected, then upon reaching the PDLL, all positions in the account will be liquidated, and the account will be blocked from trading until the next trading day.
When the PDLL is correctly enabled, the DLL gauge in your header will be replaced by a PDLL gauge. This gauge will move in relation to your net profit and loss to help you track your daily performance in relation to your personalized daily loss limit.
Personal Daily Loss Limit
Note: When an account is liquidated and blocked, it cannot be reversed. The account will be blocked from trading until the next trading day. This feature is intended to provide a break from the markets and promote disciplined trading.
Trailing Personal Daily Loss Limit
The Trailing Personal Daily Loss Limit (TPDLL) is an advanced risk management tool that allows traders to set a loss limit that dynamically adjusts based on their highest reached account balance. When enabled, the TPDLL will move up as the account balance increases but will never move back down, ensuring a trader's risk is managed in real-time as their trading session progresses.
How It Works
Setting the Limit
Traders enter a specific dollar amount as their Personal Daily Loss Limit (PDLL).
Traders select an action upon reaching the threshold (e.g. Liquidate).
Enabling Trailing
Check the "Enable Trailing" option for the PDLL to dynamically adjust to trail the highest balance (after activation) the account reaches during the session.
Select Trailing Logic
Unrealized Gains = Personal Trailing Loss Limit will trail the highest unrealized profit since enablement.
Realized Gains = Personal Trailing Loss Limit will trail the highest realized (closed) profits since enablement.
Dynamic Drawdown Protection
If the account balance increases, the loss limit automatically shifts up to maintain the same trailing threshold.
If the account balance declines, the loss limit remains fixed at the last peak, ensuring a controlled drawdown from that high point.
If the trader's balance falls to or below the set trailing threshold balance, the pre-selected PDLL action (e.g., Liquidate & Block) will occur.
Example Scenario
A trader sets their PDLL to Trailing $500 based on Unrealized Gains, action to Liquidate, and enables Trailing.
Their account balance at the time the TPDLL was enabled was $50,500 and later increases to $51,500.
At this point, the TPDLL is now set at $51,000 (i.e., $51,500 - $500).
If the account balance drops to $51,100, the trailing loss limit remains at $51,000.
If the balance falls to $51,000 or below, the selected PDLL action (e.g., Liquidate) will be triggered.
How to Enable the Trailing Personal Daily Loss Limit
Navigate to the Risk Settings section.
Enter a value for the Personal Daily Loss Limit (PDLL).
Select a PDLL Action (e.g., Liquidate).
Check the Enable Trailing box
Select Trailing PDLL Type
Save Risk Settings
The system will now trail the highest account balance reached after activation.
Highest Unrealized Balance updates as balance reaches new highs
Trailing Balance updates as new realized profits are reached
Note: If the Trailing Personal Daily Loss Limit is enabled and the trading day concludes, the start-of-day balance for the next trade day will become the new highest releaized/unrealized balance.