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

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).

Enabling Trailing

When the "Enable Trailing" option is selected, the PDLL will dynamically adjust to trail the highest balance (after activation) the account reaches during the session.

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 Trailing PDLL to $500, 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

Navigate to the Risk Settings section.
Enter a value for the Personal Daily Loss Limit (PDLL).
Select a PDLL Action (e.g., Liquidate).
Check the Enable Trailing box to activate the feature.
Save Risk Settings
The system will now trail the highest account balance reached after activation.

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 unrealized balance.

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Last updated 1 month ago

Overview

How It Works

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).

Enabling Trailing

When the "Enable Trailing" option is selected, the PDLL will dynamically adjust to trail the highest balance (after activation) the account reaches during the session.

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 Trailing PDLL to $500, 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

Navigate to the Risk Settings section.

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

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

Check the Enable Trailing box to activate the feature.

Save Risk Settings

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

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 unrealized balance.