What the daily loss limit is
TakeProfit Trader caps your loss for a single trading day at $1,100, measured on the day's realised P&L. Reach it and your trading day is over.
Because it is measured on realised P&L, it is your closed losses for the day that count, which is why cutting a loser at your planned stop, rather than letting it grow, is what keeps the day alive.
How it's measured and when it resets
The clock is the trading day: the limit re-arms at each daily rollover, measured from that day's starting balance. Yesterday's loss does not shrink today's allowance, but it has already eaten into the end-of-day trailing drawdown, which never resets.
Why it's the most-breached rule
The daily loss limit fails more evaluations than any other rule, because it only takes a short losing streak at the wrong size. The arithmetic is unforgiving: risking $550 per trade, two full stops end the day; at $275 per trade you can absorb four. On TakeProfit Trader 50K that is the difference between a red day and a failed evaluation.
What happens if you breach it
At minimum your trading day is over; depending on the program, a daily-loss violation can end the evaluation outright. Treat it as account-ending and size so you never have to check the fine print.
How to stay clear
Size so that two consecutive full-stop losses cannot reach $1,100. Set the line in advance, and stop for the day the moment you are within one normal loss of it.
- →Treat $1,100 as a hard stop, not a soft guideline.
- →Size so two losers in a row can't reach it.
- →Stop for the day once you're one normal loss away from the limit.
Figures reflect a common TakeProfit Trader account at the time of writing. Firms revise rules often, so verify against the TakeProfit Trader site before relying on them.
Merlin's gauges derive from closed trades. Your firm watches live equity including open positions.
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