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Prop firms daily loss limit

  • Post #1
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  • First Post: Sep 22, 2023 8:53am Sep 22, 2023 8:53am
Fellow traders,
I need your views on the following matter.

Prop firms has a rule called "Max Daily Loss". My understanding is one cannot breach that amount at the close of each day. However, this is not the case. If my loss exceed this amount during a trade and my trade bounce back within that same day and I ended up with a profit, I get disqualified for breaching the daily loss limit. I know they are protecting their finance against heavy losses, but I think the name itself is misleading. Max daily loss should mean the loss incurred at the close of a particular day.
Grateful to have your thoughts.
Claud Lepathy
Depends, if they're doing it based on open positions at close of day, then it's because their internal market offset is likely synced to the MQ infrastructure and you'll just have to suck it up because they're not real prop funds. But some are doing it on the any open positions which is just a ploy to screw you out of more. Shady I agree.
Quoting ClaudLepathy
Fellow traders, I need your views on the following matter. Prop firms has a rule called "Max Daily Loss". My understanding is one cannot breach that amount at the close of each day. However, this is not the case. If my loss exceed this amount during a trade and my trade bounce back within that same day and I ended up with a profit, I get disqualified for breaching the daily loss limit. I know they are protecting their finance against heavy losses, but I think the name itself is misleading. Max daily loss should mean the loss incurred at the close...
Facts

Max daily equity loss it should be called.
Trading is gambling. So gamble responsibly.
It is indeed misleading and I didn't think about it beforehand, until you pointed it out.
Honestly the whole concept of prop trading seems to me quite questionable.
Even though the idea looks legit and reasonable on paper.
Quoting ClaudLepathy
Fellow traders, I need your views on the following matter. Prop firms has a rule called "Max Daily Loss". My understanding is one cannot breach that amount at the close of each day. However, this is not the case. If my loss exceed this amount during a trade and my trade bounce back within that same day and I ended up with a profit, I get disqualified for breaching the daily loss limit. I know they are protecting their finance against heavy losses, but I think the name itself is misleading. Max daily loss should mean the loss incurred at the close...
If I think the way you did, it’s misleading to some extent even though I have never thought like this.
For me I have always taken it to mean that once my loss reaches the stated percentage (closed trades and floating trades) then I have then I would be cut off for the day.

Fortunately I have not yet been in this situation
Just going to leave it here:

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Quoting Tygobei
It is indeed misleading and I didn't think about it beforehand, until you pointed it out. Honestly the whole concept of prop trading seems to me quite questionable. Even though the idea looks legit and reasonable on paper.
i think prop firms are for some traders and not others. depends on your style of trading. some styles aren't gonna make it

but with a broker they would be OK. It just depends
The "Max Daily Loss" rule implemented by some prop firms has sparked controversy among traders. The rule restricts traders from incurring losses beyond a certain threshold during a single trading session like a best rangefinder. However, the rule's name is misleading as it doesn't actually refer to the total daily loss, but rather the loss incurred during an individual trade.
Quoting ClaudLepathy
Fellow traders, I need your views on the following matter. Prop firms has a rule called "Max Daily Loss". My understanding is one cannot breach that amount at the close of each day. However, this is not the case. If my loss exceed this amount during a trade and my trade bounce back within that same day and I ended up with a profit, I get disqualified for breaching the daily loss limit. I know they are protecting their finance against heavy losses, but I think the name itself is misleading. Max daily loss should mean the loss incurred at the close...
Who exactly gives a flying fuck? What a useless thread.
Congratulations ScalaFX for coming out of the closet!
Quoting ClaudLepathy
Fellow traders, I need your views on the following matter. Prop firms has a rule called "Max Daily Loss". My understanding is one cannot breach that amount at the close of each day. However, this is not the case. If my loss exceed this amount during a trade and my trade bounce back within that same day and I ended up with a profit, I get disqualified for breaching the daily loss limit. I know they are protecting their finance against heavy losses, but I think the name itself is misleading. Max daily loss should mean the loss incurred at the close...
All the matters of prop firms seem questionable even though all their papers appear to be legit. It’s somewhat misleading!
read their rules instead of complaining. It is clearly explained, on every prop firm out there, how their drawdown works...
  • Post #13
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  • Last Post: Mar 21, 2024 12:14pm Mar 21, 2024 12:14pm
Avoid using The Funded Trader TFT as your trading firm. Several clients have been scammed even though they adhered to the Daily Drawdown. TFT's reason for suspending their accounts was that traders used "a too risky strategy that goes against their policy", despite the fact that traders did not exceed the 5% daily drawdown.

In plain terms, TFT The Funded Trader is bothered by those who make too much profit. (Personally, I was thinking of switching to an account of $100,000 or even $300,000 considering that it's not too difficult to make 10% in 2-4 trades with a maximum 5% drawdown.)

Additionally, there is a Facebook group with a guy named Mohammad Ashik who lobbies for them, apparently he is their influencer, trying to attract clients, getting them to sign up through his referral link. Be careful with him!

It wouldn't be a problem if he promotes his link if the guy wouldn't also censor those who tell the truth, namely that there are people who post false results, fake withdrawals from this prop trading firm to convince traders to buy their challenges thinking they are serious and pay.

In the end, it seems that those who make a modest profit win at TFT, as the withdrawals do not leave too big of a hole in their pockets. And from the money that some still manage to withdraw, their counterpart and their influencer agent, Mohammad Ashik, benefit.
Perverted people!
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