Daily Loss Limit
Definition
The daily loss limit is the maximum amount you can lose in a single trading day before your account is violated or suspended. It resets at the start of each new trading day based on the firm's timezone.
Most prop firms enforce a daily loss limit in addition to the overall max drawdown. For FTMO, the daily loss limit is 5% of the initial account balance. On a $100,000 account, that means you cannot lose more than $5,000 in a single day. This rule prevents traders from blowing an entire account in one bad session.
The daily loss limit is typically calculated from the previous day's ending balance or equity, depending on the firm. Some firms use the higher of the two. Understanding exactly how your firm calculates this is critical — a misunderstanding can lead to an unexpected violation.
PropJournal tracks your daily loss limit in real-time and alerts you at configurable thresholds (e.g., 70% and 90% consumed). This gives you time to reduce risk or stop trading before you breach the limit.
Track daily loss limit automatically
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