Lesson 3 of 12 · 5 min
Daily Loss Limits — and Your Own, Tighter One
How a firm's daily limit works with the floor, and why your own daily stop should hit first.
Some firms cap how much you can lose in one day. Your own rules should cap it sooner.
The firm's daily limit
Depending on the firm, hitting the daily loss limit ends the day or ends the account. Check which one yours is: it changes how close you can let yourself get.
Whichever is closer wins
Your real room today is the smaller of two numbers: the room above the drawdown floor, and what's left of the daily limit.
Example
Balance $50,400, floor $48,000, daily limit $1,000, down $300 today.
Room above the floor: $2,400. Daily limit left: $700. Today you can lose $700 more, not $2,400.
Your own stop goes first
Set a personal daily stop below the firm's — for example $600 on a $1,000 limit — and mirror it in your platform's risk settings. Your plan should stop you before the firm does.
Losses in a row
Many evaluations die on the third or fourth loss in a row, when size creeps up to win it back. A rule like "three losses in a row and I'm done for the day" protects you from the trade you'd regret.
How each firm does it
Evaluation plans, as the firms published them (checked October 2026). Firms change their rules — check the firm's own page before you pay.
TradeCompass turns this into your own rules: it checks every trade against them and warns you before you break one.
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Educational content only. Not financial advice, not a buy/sell signal, no guaranteed results.