Daily Loss Limit in Prop Firms: What It Is and How It Works
Learn what the Daily Loss Limit is in futures prop firms, how it works, which firms enforce it, and practical tips to avoid hitting it. Updated comparison of Apex, MFF, Bulenox, Tradeify, Alpha Futures, and TakeProfitTrader.
What Is the Daily Loss Limit?
The Daily Loss Limit (DLL) is a risk management rule that sets the maximum amount you can lose in a single trading day. If your net loss (including open and closed positions, commissions, and fees) reaches this threshold, your account is automatically locked until the next trading session.
It is important to understand that the DLL is not an elimination rule. Unlike the maximum drawdown, hitting the daily loss limit does not mean you lose your account. Trading is simply paused and you can resume trading normally the next day.
Think of the DLL as an emergency brake: it is designed to protect you from yourself on those days when the market goes against you and the temptation for revenge trading is at its peak.
How Does the Daily Loss Limit Work?
When It Resets
The trading day in futures prop firms typically starts at 6:00 PM Eastern Time (ET) and ends at 4:10 PM ET the following day. Your DLL resets at the start of each new session.
What Happens When You Hit It
- All open positions are automatically liquidated at market price
- Pending orders are cancelled
- Your account is locked until the next session begins
- You do not lose your account — it is a soft breach
What Counts Toward the Limit
The DLL takes into account:
- Realized losses (closed trades)
- Unrealized losses (open positions in the red)
- Commissions and fees
This means that if you have an open position that momentarily dips to the limit, it will be closed even if it could have recovered later.
Intraday vs EOD: Key Differences
Many prop firms offer two types of accounts that directly affect the DLL:
Intraday Accounts (Intraday Trailing Drawdown)
- The maximum drawdown updates in real time during the session
- Generally do not have a separate Daily Loss Limit
- Risk control is managed by the intraday trailing drawdown
EOD Accounts (End-of-Day)
- The maximum drawdown only updates at end of day
- Usually include a Daily Loss Limit as additional protection
- The DLL acts as a cushion so you do not lose your entire drawdown in a single session
Which is better? It depends on your trading style. EOD accounts with DLL are more forgiving with intraday fluctuations but limit your daily loss. Intraday accounts give you more daily freedom, but the trailing drawdown can close winning positions that temporarily retrace.
Which Prop Firms Have a Daily Loss Limit?
Not all firms apply this rule in the same way. Here is an updated summary:
Apex Trader Funding
- EOD accounts only — Intraday accounts have no DLL
- Fixed values by account size
- In the Performance Account (PA), the DLL can scale as you grow
| Account | Daily Loss Limit |
|---|---|
| 25K EOD | $500 |
| 50K EOD | $1,000 |
| 100K EOD | $1,500 |
| 150K EOD | $2,250 |
| 250K EOD | $3,500 |
My Funded Futures (MFFU)
- Current plans (Core, Rapid, Pro) have no DLL during evaluation
- Funded accounts use EOD trailing drawdown as the main control
- The legacy Starter plan had a $1,200 DLL on the 50K account
- MFFU is one of the most flexible firms in this regard
Bulenox
- Has DLL on all accounts during qualification
- On the Master Account, the DLL is removed when drawdown reaches the starting balance
| Account | Daily Loss Limit |
|---|---|
| 10K | $400 |
| 25K | $500 |
| 50K | $1,100 |
| 100K | $2,200 |
| 150K | $3,300 |
| 250K | $4,500 |
Tradeify
- Depends on account type:
| Account | Select Daily | Growth / Lightning |
|---|---|---|
| 50K | $1,000 | $1,250 |
| 100K | $1,250 | $2,500 |
| 150K | $1,750 | $3,750 |
Alpha Futures
- Standard and Zero plans: DLL of 2% of starting balance (e.g., $1,000 on a 50K account)
- Advanced plan: No DLL — officially removed
- No DLL during Standard and Advanced evaluations; Zero evaluations do have it
TakeProfitTrader
- Test (evaluation): No DLL since January 2025
- PRO (funded): Has DLL (e.g., $1,100 on 50K account)
- PRO+: No DLL
Comparison Table: Daily Loss Limit on 50K Accounts
This table summarizes how the DLL applies on a $50,000 account at each firm:
| Prop Firm | DLL in Evaluation | DLL in Funded Account | Type |
|---|---|---|---|
| Apex (EOD) | $1,000 | $1,000+ (scales in PA) | Fixed |
| Apex (Intraday) | None | None | — |
| MFF (Core/Pro) | None | None | — |
| Bulenox | $1,100 | $1,100 (removed later) | Fixed |
| Tradeify (Select Daily) | $1,000 | $1,000 | Fixed |
| Tradeify (Growth) | $1,250 | $1,250 | Fixed |
| Alpha Futures (Standard) | None | $1,000 (2%) | Percentage |
| Alpha Futures (Advanced) | None | None | — |
| TakeProfitTrader | None | $1,100 (PRO) | Fixed |
7 Tips to Avoid Hitting the Daily Loss Limit
1. Define Your Maximum Loss Per Trade
If your DLL is $1,000, do not risk more than $250-$300 per trade. This gives you room for 3-4 trades before approaching the limit.
2. Always Use a Stop Loss
Trading without a stop loss on an account with DLL is like driving without brakes. Set your stop before entering the trade, not after.
3. Set a "2 Strikes" Rule
If you lose two consecutive trades, stop trading for the day. You do not need to exhaust the DLL. Your psychological capital is just as important as your financial capital.
4. Watch Out for High Volatility Periods
Economic news releases (NFP, FOMC, CPI) can cause sharp moves that push you toward the DLL in seconds. If you are not an experienced news trader, avoid trading during these times.
5. Reduce Position Size After a Loss
If your first trade of the day was negative, reduce contracts on subsequent trades. It is better to preserve capital than try to recover everything at once.
6. Monitor Open Positions
Remember that unrealized losses also count. A position that "will come back" can liquidate you if it reaches the DLL while you wait.
7. Keep a Trading Journal
Note each day how close you got to the DLL. If you see a pattern of days where you are at 70-80% of the limit, something in your strategy needs adjustment.
Is a Prop Firm With or Without DLL Better?
There is no universal answer. It depends on your profile as a trader:
The DLL suits you if:
- You tend to revenge trade after losses
- You prefer having a daily cap that forces you to stop
- You trade aggressively and need external limits
Trading without DLL suits you if:
- You have solid risk management discipline
- Your strategy involves wide intraday drawdowns before reversing
- You prefer that only the total maximum drawdown controls your risk
The most important thing is that, whether or not your account has a DLL, you set one for yourself. Self-discipline is the best trading rule that exists.
Conclusion
The Daily Loss Limit is a protection tool, not an obstacle. Understanding how it works at each prop firm allows you to choose the company that best fits your trading style and avoid unpleasant surprises.
If you are a disciplined trader who already manages daily risk, firms like MFF or Alpha Futures (Advanced) will give you more freedom. If you prefer having a safety net, Apex (EOD) or Bulenox offer that extra protection.
Whatever your choice, remember: the best Daily Loss Limit is the one you impose on yourself before the prop firm has to do it for you.