Daily and weekly loss limits

Risk & Position Sizing

A hard stop for the day

A daily loss limit is a hard stop, often 2-3% of the account, where hitting it means closing the platform for the day, no exceptions, no one more trade to get it back.

Ignoring it compounds the damage

Hitting a daily loss limit and continuing to trade anyway is exactly how a normal, survivable bad day turns into a much bigger, account-threatening one.

A weekly backstop too

A weekly loss limit works the same way, one level up. If a string of daily losses adds up to a set weekly threshold, stepping away until the following week resets the pressure to force trades.