Daily loss vs. maximum loss: two different guardrails
Why an evaluation has two loss limits, how each one is measured, and how they interact during a volatile session. · 6 min read
Most evaluations combine a daily loss limit with an overall maximum loss. They protect against different failure modes: one bad session, and a slow bleed over many sessions.
The daily limit resets every trading day
At each rollover (17:00 New York) the platform records a reference level — your balance, or for some programs the higher of balance and equity. During the day, if your equity falls to the reference minus the daily allowance, the rule is breached.
The maximum loss never resets
The maximum-loss floor is either static (fixed below your starting balance) or trailing. Trailing floors only ever move up, and in our demo programs they stop moving once they reach your starting balance.
Practical guidance
- Size positions so that a stop-loss hit costs a fraction of the remaining daily buffer.
- Watch equity, not balance — open losses count.
- Remember commissions are deducted on every fill.
Educational content only. Not investment advice.