How does PropExecutor calculate the daily loss limit?
Quick answer
It measures equity, including open positions, against the day's opening value, which is the higher of the account's balance and equity at the start of the UTC day. If equity falls by the set percentage below that value, the account breaches. The limit resets at 00:00 UTC each day.
Detailed answer
The calculation is designed to be strict enough to protect the firm and clear enough for traders to check.
The formula
- Opening value = max(balance, equity) at 00:00 UTC.
- Floor = opening value × (1 − daily limit %).
- Breach when equity ≤ floor.
Why the higher of balance and equity
If the day opened on equity alone, a trader carrying a floating loss overnight would get a fresh full allowance measured from the depressed level. Repeated each night, an account could drift down without ever breaching. Opening on the higher figure removes that loophole; it can only tighten the limit, never loosen it.
Worked example
A $100,000 account with a 5% limit holds a position $3,000 in loss at midnight. Balance $100,000, equity $97,000. Opening value: $100,000. Floor: $95,000. The trader can lose $2,000 more today, not $4,850.
Where traders see it
The terminal's dashboard shows the opening value, the floor and the remaining headroom, updated live.
The maximum loss limit is separate
It is a fixed floor under the starting balance and does not reset.
PropExecutor team · Updated
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