CandleGPTProp firm rules: daily loss and max loss, explained
Most prop firm challenges are not lost because the trader missed the target, but because they broke a loss limit, often in a single day. Here is how those limits work.
The two main limits
| Limit | Common value | What it measures |
|---|---|---|
| Max daily loss | Often 4 to 5% of starting capital | How much you can lose in one day |
| Max loss (drawdown) | Often 8 to 10% of starting capital | The lowest your account can go |
Exact values and how they are calculated differ between prop firms, and even between programmes. Always read your challenge's rules: this guide explains the principles, not any one company's rules.
The daily loss, in detail
The day usually starts at midnight on the prop firm's server, not at midnight where you live. The starting point is often the balance (or equity) at the start of the day, and many prop firms also count floating losses on open positions: one losing trade you have not closed can be enough to break the limit.
Example: $100,000 account, 5% daily limit ($5,000). You have lost $3,600 on trades closed today. You have $1,400 of room left, open positions included. One badly sized position can use it up.
Max loss: static or trailing
- Static: the floor is set from starting capital. With $100,000 and 10%, your equity must never go below $90,000.
- Trailing: the floor rises as your account rises. After a win, your real room can be smaller than you think.
Other rules that catch traders out
- News: some prop firms forbid opening or closing trades a few minutes around high-impact releases on some accounts. See the news guide.
- A minimum number of trading days before you pass.
- Weekend positions, sometimes forbidden.
- Consistency: some cap the share of profit made in a single day.
How not to break the limits
- Size your risk against the daily limit, not only the account. With a 5% limit and 1% per trade, you have room for several losses; at 2.5% per trade, two losses and you are nearly done.
- Set a personal limit below the prop firm's, for example stop for the day at −2% or −3%.
- Do not double up after a loss. That chain is often what breaks the daily limit.
- Work out every size from the stop (see the position size guide).
- Watch open positions, not just closed trades.
CandleGPT does this for you, in MetaTrader
In CandleGPT, the Prop firm tab tracks your daily and total loss from your synced trades, and the risk alert in MetaTrader shows the percentage of the account at stake as soon as you open a position.
See plansTrading involves a high risk of losing money. This guide is educational: it is not investment advice and does not tell you what to buy or sell. Past results do not predict future results.