Who this is for — Anyone who, after two losing trades, increases size to recover and turns a bad day into structural damage.
In plain terms — Max daily risk is the emergency brake: once the threshold is hit, the session is over. No exceptions.
Bronze prerequisite — Before this lesson: trading-journal, discipline, capital, percentage-risk. See bronze-path.
How to define it in the plan
The daily limit is expressed as a percentage of allocated-capital or as an absolute amount.
It must be compatible with risk-per-trade and max-trades.
Common thresholds: 1% to 2% of allocated capital, but the choice depends on method volatility and psychological stability.
Example — Daily limit 1.5%. After three losing trades you hit the threshold: close the platform and note the reasons. The next day you restart clear-headed, without impulsive recovery.
Card
- What it is: maximum loss allowed in a single day.
- When to use it: always, as a hard rule in the plan.
- Typical mistake: raising the threshold mid-session to keep trading.
Silver path — Module: Trading plan. Part of silver-path.
Gold path deep dive
On the Gold path, the daily stop integrates with drawdown-control and volatility-targeting:
- Limit on allocated capital, not on the total scattered account.
- Preventive trigger at −70% of the limit: reduce size or block borderline setups.
- Hard stop automated on the platform; reactivation only the next day with a checklist.
Gold path — Module: Advanced risk control. Part of gold-path.