Trailing Personal Daily Loss Limit

Overview

The Trailing Personal Daily Loss Limit (TPDLL) is an advanced risk management tool that allows traders to set a loss limit that dynamically adjusts based on their highest reached account balance. When enabled, the TPDLL will move up as the account balance increases but will never move back down, ensuring a trader's risk is managed in real-time as their trading session progresses.

How It Works

1. Setting the Limit

• Traders enter a specific dollar amount as their Personal Daily Loss Limit (PDLL).

• Traders select an action upon reaching the threshold (e.g. Liquidate).

1. Enabling Trailing

• Check the "Enable Trailing" option for the PDLL to dynamically adjust to trail the highest balance (after activation) the account reaches during the session.

1. Select Trailing Logic

• Unrealized Gains = Personal Trailing Loss Limit will trail the highest unrealized profit since enablement.

• Realized Gains = Personal Trailing Loss Limit will trail the highest realized (closed) profits since enablement.

1. Dynamic Drawdown Protection

• If the account balance increases, the loss limit automatically shifts up to maintain the same trailing threshold.

• If the account balance declines, the loss limit remains fixed at the last peak, ensuring a controlled drawdown from that high point.

• If the trader's balance falls to or below the set trailing threshold balance, the pre-selected PDLL action (e.g., Liquidate & Block) will occur.

Example Scenario

• A trader sets their PDLL to Trailing $500 based on Unrealized Gains, action to Liquidate, and enables Trailing.

• Their account balance at the time the TPDLL was enabled was $50,500 and later increases to $51,500.

• At this point, the TPDLL is now set at $51,000 (i.e., $51,500 - $500).

• If the account balance drops to $51,100, the trailing loss limit remains at $51,000.

• If the balance falls to $51,000 or below, the selected PDLL action (e.g., Liquidate) will be triggered.

How to Enable the Trailing Personal Daily Loss Limit

1. Navigate to the Risk Settings section.

2. Enter a value for the Personal Daily Loss Limit (PDLL).

3. Select a PDLL Action (e.g., Liquidate).

4. Check the Enable Trailing box

5. Select Trailing PDLL Type

6. Save Risk Settings

7. The system will now trail the highest account balance reached after activation.

Highest Unrealized Balance updates as balance reaches new highs

Trailing Balance updates as new realized profits are reached

Note: If the Trailing Personal Daily Loss Limit is enabled and the trading day concludes, the start-of-day balance for the next trade day will become the new highest releaized/unrealized balance.