Daily Loss Limit at a Glance
- It Limits how much your account can lose in one trading day
- Fixed for the entire session (does not trail or adjust intraday)
- If it is reached → positions close automatically → trading pauses for the day
- Your account remains active
- Trading resumes next session
- DLL resets daily at 6PM ET
- DLL grows as your account grows
- DLL does not limit profit potential
What the Daily Loss Limit Does
The Daily Loss Limit (DLL) controls how much an account may lose in a single trading day. The DLL is a fixed dollar amount for the session and does not adjust intraday. It is monitored in real time and applies to total account equity, including both realized and unrealized losses.
If at any moment your net intraday loss (including open positions) reaches the Daily Loss Limit (DLL), all open positions are automatically liquidated at the prevailing market price and trading is paused for the remainder of the session.
Because liquidations occur at market price, the final filled balance may be slightly above or below the DLL threshold depending on liquidity and market conditions. This does not change the fact that the DLL was triggered.
The account remains active and resumes trading at the next session open.
DLL works alongside End-of-Day Drawdown by limiting intraday risk and preventing excessive single-day losses.
What the DLL Means for you as a Trader
You may trade your strategy normally and manage positions intraday. The only restriction is that your total intraday loss cannot exceed your assigned Daily Loss Limit.
Once the DLL is reached, trading stops for that session and resumes at the next reset.
DLL During Evaluation
During the EOD Drawdown Evaluation, the DLL amount is fixed based on your selected account size and does not increase as profits grow. There is no DLL for Intraday Drawdown Evaluations.
| EOD Drawdown Evaluations Only | 25K | 50K | 100K | 150K |
| Daily Loss Limit | $500 | $1,000 | $1,500 | $2,000 |
DLL During PA
In Performance Accounts (PA), the Daily Loss Limit (DLL) scales as your account grows. As you reach higher profit tiers, both your maximum contract size and your allowed daily loss limit may increase according to the scaling structure shown below.
Tier Levels by Account Size
$25K Performance Account |
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| Profit Range | Max Contracts | Daily Loss Limit (DLL) | Tier |
| $0 – $999 | 1 Contract | $500 DLL | Level 1 |
| $1,000 – $1,999 | 2 Contracts | $500 DLL | Level 2 |
| $2,000 & Up | 2 Contracts | $1,250 DLL | Level 3 |
$50K Performance Account |
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| Profit Range | Max Contracts | Daily Loss Limit (DLL) | Tier |
| $0 – $1,499 | 2 Contracts | $1,000 DLL | Level 1 |
| $1,500 – $2,999 | 3 Contracts | $1,000 DLL | Level 2 |
| $3,000 – $5,999 | 4 Contracts | $2,000 DLL | Level 3 |
| $6,000 & Up | 4 Contracts | $3,000 DLL | Level 4 |
$100K Performance Account |
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| Profit Range | Max Contracts | Daily Loss Limit (DLL) | Tier |
| $0 – $1,999 | 3 Contracts | $1,750 DLL | Level 1 |
| $2,000 – $2,999 | 4 Contracts | $1,750 DLL | Level 2 |
| $3,000 – $4,999 | 5 Contracts | $1,750 DLL | Level 3 |
| $5,000 – $9,999 | 6 Contracts | $2,500 DLL | Level 4 |
| $10,000 & Up | 6 Contracts | $3,500 DLL | Level 5 |
$150K Performance Account |
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| Profit Range | Max Contracts | Daily Loss Limit (DLL) | Tier |
| $0 – $1,999 | 4 Contracts | $2,500 DLL | Level 1 |
| $2,000 – $2,999 | 5 Contracts | $2,500 DLL | Level 2 |
| $3,000 – $4,999 | 7 Contracts | $2,500 DLL | Level 3 |
| $5,000 – $9,999 | 10 Contracts | $3,000 DLL | Level 4 |
| $10,000 & Up | 10 Contracts | $4,000 DLL | Level 5 |
Tier, Position Size, and DLL Example Walkthrough
Day 1 – Starting Account
Starting Balance: $50,000Tier: Level 1
Max position size: 2 contractsDaily Loss Limit: $1000 (If your intraday losses reach $1000, positions are auto-liquidated. Trading pauses for the rest of the day and your account remains active for the next trading session)
Day 2 – Profitable Close
Day 1 Closing Balance: $51,500
At market close, your account is reviewed.
New Tier: Level 2
Max position size: 3 contracts
For Day 2’s trading session your DLL is $1,000
Day 3 – Another Profitable Close
Day 2 Closing Balance: $53,000
At market close:
New Tier: Level 3
Max position size: 4 contractsDaily Loss Limit: $2,000
Maximum Tier
For the $50K account, DLL scaling stops at Level 4. Once Level 4 is reached, the Daily Loss Limit no longer increases, even if the account continues to grow.
Video Explanation of Daily Loss Limit
FAQs
Why is there a DLL?
The Daily Loss Limit exists to control how much an account can lose in a single trading day. It helps prevent overtrading, emotional decision-making, and large losses caused by a single bad session while keeping the account active for future trading days.
What is the difference between DLL and EOD Threshold?
The Daily Loss Limit (DLL) and the End-of-Day (EOD) Threshold serve different risk-control purposes. The DLL limits how much an account can lose within a single trading day; if it is reached, all open positions are automatically liquidated and trading is paused for the remainder of the day, but the account remains active and resumes trading the next session.
The EOD Threshold, by contrast, defines the maximum total drawdown allowed across the life of the account; it is calculated at market close, enforced intraday once established, and if touched at any time, results in immediate liquidation and PA failure.
In simple terms, the DLL ends your trading day, while the EOD Threshold disqualifies your PA.
Does hitting DLL fail my account?
No. Hitting the Daily Loss Limit does not fail your account. It simply pauses trading for the remainder of the day, allowing you to continue trading on the next trading day starting at 6PM ET open.
Does DLL reset?
Yes. The Daily Loss Limit resets at the start of the next trading day (6PM ET), based on your current account tier and end-of-day balance.
Is DLL Checked intraday or at the end of day?
The Daily Loss Limit is monitored intraday. Once the limit is reached during the trading session, trading is paused for the rest of that day.
Will my positions be flattened automatically if I reach DLL?
Yes, an auto liquidation order will flatten out all the trades on the account that has reached DLL and you will not be able to execute new orders until the next day’s market open.
Can the DLL change for my account?
Yes. The Daily Loss Limit can increase or decrease based on your end-of-day account balance and tier. As your balance grows, the DLL may increase; if your balance declines, the DLL may decrease. However, it will never drop below the initial Level 1 Daily Loss Limit.
What happens if my account drops to a lower tier?
If your end-of-day balance drops below a tier threshold, your account moves down to the corresponding lower tier. Your Daily Loss Limit and position size are adjusted to match that tier for the next trading day.
What happens if my account balance drops below Level 1?
If your account balance drops below the Level 1 threshold, your account remains at Level 1. The Daily Loss Limit and position size stay at the Level 1 limits and do not decrease further.
Does DLL affect the EOD Threshold?
No. The Daily Loss Limit and the End-of-Day Threshold are separate rules. Hitting the Daily Loss Limit does not change or affect the EOD Threshold
Can I Still Trade My Normal Strategy Under DLL?
Yes. DLL does not restrict how you trade. It only limits maximum daily loss. Profitable trading is unrestricted.
Will DLL Prevent Me From Reaching Profit Targets?
No. DLL limits downside only. Profit potential remains unrestricted, subject to your tier’s position limits.