# Reference for daily limit

The EA compares your **current balance** to this baseline; when the loss reaches your Daily Loss Limit %, the EA closes all open positions managed by it and pauses trading until the next day (broker server time).

* **Use balance at day start**\
  Captures the **account balance at 00:00 broker server time** and keeps it fixed for the entire day.
* **Use highest balance of day**\
  Tracks the **intraday peak balance** from 00:00 onward and updates the reference whenever a new high is achieved.

{% hint style="info" %}

### When to use each option

**Use balance at day start**

* **Pros:** Predictable daily risk budget; simple to audit and backtest.
* **Best for:** Intraday systems with steady P/L profiles; prop firm rules using day-start balance.

**Use highest balance of day**

* **Pros:** **Locks in intraday gains**—drawdown is measured from the top, so protection triggers earlier after profits.
* **Best for:** Momentum/scale-out strategies where you want to protect newly made profits the same day.
  {% endhint %}

{% hint style="warning" %}

### Why not / trade-offs

* **Balance-based ≠ equity-based:** Floating drawdowns are ignored until realized—large unrealized losses might not trigger until closed.
* **Highest balance of day** can **trip sooner** after a profit spike, potentially exiting during normal pullbacks.
* Backtest artifacts can occur around midnight if the tester batches ticks—verify in visual mode.
  {% endhint %}

{% hint style="info" %}

### Examples

* **Daily Loss Limit % = 10, Reference = Balance at day start = 10,000**\
  Trigger at **9,000** balance.
* **Daily Loss Limit % = 10, Reference = Highest balance of day = 12,000**\
  Trigger at **10,800** balance (protects 1,200 of intraday gains).
  {% endhint %}


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