Daily Loss Limit Calculator
Accounts rarely die from one bad trade — they die from the cascade after it. A daily loss limit is the circuit breaker. This sizes one from your per-trade risk, and keeps it inside your prop firm's breach line.
Suggested daily loss limit
3.00%
In currency
300
Stop-outs to hit it
3
Three full stop-outs ends your day — room to trade, not enough to spiral.
A starting point based on a common framework — not financial advice. Size it to your own strategy and tolerance, and remember a limit only works if something actually stops the next trade.
The framework
A workable daily limit is roughly two to three times your per-trade risk: two or three full stop-outs end the session. That's enough room to trade a normal losing day and not enough to turn one into a spiral.
On a prop account, your personal limit should sit well inside the firm's — around half its daily drawdown. The firm's number is a disqualification line, not risk management; if it's your first line of defence, one bad morning ends the challenge.
Related reading
A limit only works if something stops the next trade. Risk Marshal halts trading on your MT5 account for the rest of the day once your limit is hit — with no override in the heat of the moment.
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