Monitoring Daily and Maximum Loss Limits in Prop Trading Accounts

Summary

This document describes an on-chart risk monitor for funded trading accounts. It reports the day’s realized and floating result, starting balance, equity, the share of the daily loss allowance consumed, and remaining room under daily and maximum loss limits. The calculation combines closed results for the day with the difference between current equity and balance; the daily allowance and maximum loss floor are derived from the configured account size and percentage limits.

The user sets the trading day’s server-hour start, account size, loss thresholds, warning level, and display and alert preferences. Alerts can be issued at the warning threshold and at the daily limit. The day result excludes deposits and withdrawals, and the day start balance depends on account history being loaded in the terminal. This is a monitoring aid rather than a trading signal or order system. Its usefulness depends on matching the inputs and day-counting convention to the specific firm’s rules; the document does not provide performance evidence or verify those rules.

Key ideas

• The monitor combines closed trades and floating profit or loss to track the current day’s result.
• Daily and maximum loss boundaries are calculated from a user-entered account size and percentage limits.
• The user configures the trading-day start according to server time and can enable threshold alerts.
• Deposits and withdrawals are excluded, and the calculation relies on account history being available.
• The monitor does not generate trade signals or place orders.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.