Who this is for — Traders who burn a month in one afternoon after 2–3 stops. Daily stop is the session kill switch.
Max daily risk (daily stop) is cumulative loss threshold beyond which you close platform — no exceptions. Complements risk per trade and Bronze maximum loss with Silver operational rule in plan.
In plain terms — Daily budget spent = office closed — like a spending limit you do not renegotiate after two drinks.
How to define it
| Format | Example |
|---|---|
| % capital | −2% daily equity |
| R multiple | −3R cumulative |
| Fixed amount | −$200 (consistent with size) |
Typical Silver: −2R to −4R or 1.5–3% operating capital.
At trigger
- Close pending orders (if rule says so)
- Shut platform
- Brief journal — cause, not «recover tomorrow early»
Typical mistake — «Just one trade to break even» with daily stop already broken — guaranteed revenge.
Example — Max −3R/day. Two −1R stops, third −1R → session done at 11:00, capital protected.
Summary sheet
- Function: anti-tilt, anti overtrading.
- Pair: max trades/day + daily stop.
- Review: frequent hits → setup or psychology, not raising limit.
Silver path — Plan module. Index: Silver path. Also in Gold path — risk control module (input for drawdown control).
Sources
- CME Group — Risk management and your trade plan — define maximum loss per trade and maximum day loss.
- CME Group — Getting started: building a sound foundation — example of a total daily loss limit in a plan.
- FINRA — Day-trading risk disclosure — high day-trading risks and the need to consider resources and risk tolerance.