What does a daily loss limit do?

Written by Phoenix Labs
Risk managementHow each rule is measured, what ends an evaluation, what merely pauses it, the two clocks every account carries, and the strategies that are not allowed.

A daily loss limit is measured from your balance at the start of the trading session. If your equity falls by that amount during the session, every position is closed immediately and trading is paused until the next session opens.

It does not fail your account. The evaluation continues the next day. The total drawdown is still enforced at the same time, so a large enough single loss can still end the account through the drawdown floor.

Blueprint 25K offers a daily loss limit only if you choose one when you build the account. Incentive $10K Pay-on-Pass and Bedrock $25K Static Drawdown have no daily limit at all.

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