Daily loss limit calculator
The trade that blows up a week is almost never the first loss. It's the one you take to win it back. Set the line now, while you're calm: your dollar limit, how many losses fit under it, and the rule that ends the day.
| A bad day | This trade | Down on the day |
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How it works: daily limit = account × max daily loss %. One full loss = account × risk per trade %. Full losses allowed = daily limit ÷ one full loss, rounded down. The week line assumes five days in a row that each end at the limit, with each day's limit taken from that morning's balance.
Why a limit you set the night before works
The worst trades come right after a loss. You want it back, so you size up and skip your checks. A daily limit makes that choice before the day starts, while you're calm. Hit the line, close the platform, and come back tomorrow. Nobody can talk you out of a rule you wrote down. That's the whole idea behind the 2-loss rule in daily loss limits. Pair it with the right size for each trade: how much to risk per trade.
The week line is the one to look at
One bad day at 2% is easy to shake off. Five in a row is close to 10% gone, and getting it back takes a bigger gain than the loss. That's the reason to keep the daily number small. Write your limit at the top of your trading plan. My free trading templates include a plan with a line for it.
Make this a habit, not a one-off. Lesson 2 of our free email course is all risk: the 1% rule, where your stop goes, and the 2-loss rule. Send me the free lessons →
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