# Daily Loss Limit %

**Daily Loss Limit %** caps your risk for a single calendar day. When your **equity** drops by the chosen percentage (relative to the EA’s **Reference for Daily Limit**), the EA takes action to protect the account.

* **0 (Disabled)** – The EA does **not** close trades because of daily drawdown. It continues operating using its own recovery/stop logic.
* **Custom value** (e.g., 5, 10, 30) – If the loss threshold is reached, the EA **closes all open positions** and **pauses new trading** for the rest of the day. It **automatically resumes** the next day.<br>

{% hint style="info" %}

### How It Works

1. **You set Daily Loss Limit % (e.g., 10).**
2. The EA records the **Reference for Daily Limit** at the start of the trading day (see “Reference” below).
3. It continuously checks the **equity-based drawdown** against your limit.
4. **If triggered:**
   * Closes all open trades (market orders).
   * Pauses new entries until the day resets.
5. **Next day:** Trading resumes automatically once a new day starts (based on broker server time).
   {% endhint %}

{% hint style="info" %}

### Reference for Daily Limit (Balance)

Choose what the percentage is measured against:

* **Use balance at day start** (default, predictable): compares losses to the opening balance of the day.
* **Use highest balance of day** (more protective): compares losses to the intraday peak balance, locking in gains sooner.

**Choice of reference:**

* *Balance at day start* → stable daily budget.
* *Highest balance of day* → tighter after profits; trips earlier by design.
  {% endhint %}

{% hint style="success" %}

### Why use it

* **Fixed daily risk budget** with hard enforcement.
* **Discipline by design**—prevents revenge trading and overexposure.
* **Locks in intraday gains** when using “highest balance of day”.
  {% endhint %}

{% hint style="warning" %}

### Why not use it

* **Balance-based ≠ equity-based:** floating drawdowns aren’t considered until closed.
* **May exit during temporary volatility**, potentially missing rebounds.
* **Not a substitute** for position sizing, per-trade stops, or a robust strategy edge.
  {% endhint %}


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