Daily Loss Limits
Last updated: Jan 10, 2026
Understanding and configuring daily loss protection
Protect your account with daily loss limits
Two Loss Limit Modes
RelayDesk offers two ways to calculate daily loss limits:
- Bot stops trading when overall daily profit/loss reaches your limit
- This is the traditional behavior most traders are used to
- Example: -$300 limit means bot stops when daily P&L hits -$300
- Wins offset losses in the calculation
- Bot stops trading when total of losing trades hits your limit
- Regardless of any wins you have
- Preserves your gains instead of giving them back
- More conservative approach
Example Comparison
Scenario: You're up $500 for the day, then take $300 in losses
- Current P&L: +$200 ($500 wins - $300 losses)
- Bot continues trading (not at -$300 yet)
- Risk: Could give back more gains
- Total losses: $300
- Bot pauses immediately (hit loss limit)
- You keep your $200 net gain
- More defensive approach
Which Mode Should You Use?
- You want traditional loss limit behavior
- Your strategy has high win rate
- You're comfortable giving back some gains
- You trade frequently throughout the day
- You want to protect gains more aggressively
- You tend to give back profits on bad days
- You prefer more conservative risk management
- You want to lock in winning days
Configuration
- Go to Bot Builder → Risk Management
- Set Daily Loss Cap amount
- Choose mode: Net P&L or Accumulated Losses
- All existing bots default to Net P&L mode
- You can change mode at any time
Recommended Setup
Start with Net P&L mode to understand your strategy's behavior. Switch to Accumulated Losses mode if you find yourself giving back too many gains on losing streaks.
What Happens When Limit Is Hit?
- Bot automatically pauses
- No new positions will be opened
- Existing positions remain open with OCO exits
- You can manually close positions if desired
- Bot resets at start of next trading day
- You receive notification (if enabled)
riskloss-limitsprotection
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