The Daily Drawdown Limit
The absolute maximum you can lose in a day, measured from the day's starting balance. Hit it and you're done. No "one more trade."
Risk Management Protocol
One number decides how long you stay in the game: your Daily Drawdown Limit. You choose it. You write it down. You treat it as law.
Your day, mapped
Not a fixed %. A real amount, based on your account, your tolerance and your life.
From risk to lots
Two losses at this size equal your DDL. Exactly as the protocol intends.
Pip values are approximate; confirm with your broker or use the full calculator for exact figures.
The protocol
The absolute maximum you can lose in a day, measured from the day's starting balance. Hit it and you're done. No "one more trade."
Your DDL splits into two units of half each. Trade 1 risks half. If it loses, Trade 2 risks the other half. Two losses — finished.
If Trade 1 wins, today's profit can size up the next trade. You press with the market's money, never your original capital.
Intraday peaks don't count. The DDL is anchored to where the day started. Down your DDL from the open? Walk away.
Every new day the DDL resets against the new starting balance. Winning days compound your capital and your protection.
Raise your DDL only at milestones: optional at +50% growth, mentor review at +100%. Never let risk creep in unnoticed.
Roughly 5x your DDL. Hit it and stop. A day that big is already an outlier — protect it, don't chase more.
Worked examples
Illustrative only — your DDL should be your own number, not one copied from here.