Daily Loss Limit
The Daily Loss Limit is a real-time risk rule that limits how far an account’s live equity may fall during one FairTicks trading day. Current standard Classic and Discipline Accounts use a Fixed Floor Daily Loss model with 25% Profit Room. Rapid and Instinct Accounts do not use Daily Loss.
The active Daily Loss status, limit, breach level, Profit Room and remaining room are shown for your specific account. The account rule snapshot displayed in the platform always overrides generic examples in this article.
The rule in one sentence
If live equity touches or falls below the active Daily Loss breach level, the account breaches immediately. Daily Loss has no grace period or time buffer.
Key terms
Live equity
Live equity is the account balance plus the unrealized PnL of open positions. It also reflects costs that reduce balance, including commissions.
Daily start equity
Daily start equity is the account’s live equity recorded at the official FairTicks daily reset. It becomes the starting reference for the new trading day.
Daily high equity
Daily high equity is the highest live equity recorded during the current FairTicks trading day. It starts from the daily start equity and can move upward when a new intraday equity high is reached.
Daily loss limit
The Daily Loss Limit is the configured risk amount for the account. The exact value depends on the account template and is displayed in the dashboard.
Daily Loss breach level
The Daily Loss breach level is the minimum live equity allowed at that moment. Its calculation depends on whether the account uses Fixed Floor or Fixed Allowance.
The current FairTicks Daily Loss model
Current standard Classic and Discipline Accounts use a Fixed Floor model. The floor begins from the daily start equity and can move upward only when part of the current day’s profit becomes protected.
| Current standard model | Daily Loss | Profit Room |
|---|---|---|
| Rapid | Disabled | Not applicable |
| Classic | Enabled — Fixed Floor | 25% |
| Discipline | Enabled — Fixed Floor | 25% |
| Instinct | Disabled | Not applicable — Trailing Drawdown applies |
FairTicks is template-driven. A future or specially generated account may use a different configuration. Always follow the rules displayed on the selected account.
Fixed Floor with Profit Room
Fixed Floor begins with the daily start equity and the configured Daily Loss Limit. Intraday profit may increase the breach level, but only the portion of profit that is not kept as additional loss room is added to the floor.
allowed profit room = daily profit × profit room percent
protected profit = max(0, daily profit − allowed profit room)
daily breach level = daily start equity − daily loss limit + protected profit
remaining Daily Loss room = live equity − daily breach level
What is Profit Room?
Profit Room controls how much of the current day’s profit may remain available as extra loss room. The rest is protected by moving the Daily Loss breach level upward.
| Profit Room | Effect of $700 daily profit | Amount added to breach level |
|---|---|---|
| 100% | All $700 remains available as additional room | $0 |
| 50% | $350 remains available as additional room | $350 |
| 0% | No profit becomes additional room | $700 |
Fixed Floor does not always mean that the numeric breach level remains unchanged all day. Its starting reference is fixed at daily start equity, but the breach level may rise as profit is protected under the configured Profit Room percentage.
Fixed Floor example — 25% Profit Room
Daily start equity: $50,000
Daily Loss Limit: $1,500
Profit Room: 25%
Starting breach level: $50,000 − $1,500 = $48,500
The account then reaches +$700 in daily profit.
Allowed Profit Room = $700 × 25% = $175
Protected profit = $700 − $175 = $525
New breach level = $50,000 − $1,500 + $525 = $49,025
Live equity: $50,700
Remaining room = $50,700 − $49,025 = $1,675
The trader keeps the original $1,500 allowance plus $175 of the day’s profit as additional room. The remaining $525 is protected by moving the breach level upward.
Open positions can cause a Daily Loss breach
Daily Loss uses live equity, not only closed-trade results. An unrealized loss can therefore trigger a breach before a position is manually closed.
Current Daily Loss breach level: $49,025
Balance: $50,200
Open PnL: -$1,400
Live equity = $50,200 − $1,400 = $48,800
Because $48,800 is below $49,025, the account breaches.
Commissions also count
Commissions reduce balance and therefore reduce live equity. Even when raw trading PnL is flat, commissions can consume Daily Loss room or contribute to a breach.
When does Daily Loss reset?
Daily Loss resets at the official FairTicks daily reset. At that moment, FairTicks records a new daily start equity for the new trading day.
The new day begins with zero daily profit and a newly calculated Fixed Floor breach level based on the new daily start equity.
The reset does not restore balance, erase losses, refund commissions, reset Maximum Loss, or reverse a previous breach.
What happens to open positions at daily reset?
Open positions are not automatically closed merely because the daily reset occurs. Their unrealized PnL is included in live equity and can therefore affect the new daily start equity.
Open losing position at reset
Balance: $50,000
Open PnL: -$400
Live equity at reset: $49,600
New daily start equity: $49,600
Open winning position at reset
Balance: $50,000
Open PnL: +$600
Live equity at reset: $50,600
New daily start equity: $50,600
If open profit is included in the new daily start equity and later disappears, the position can consume the new day’s Daily Loss room quickly.
Which accounts have Daily Loss?
Daily Loss is template-driven. The rule can be enabled or disabled and can use a different method depending on the account configuration. Always use the rules displayed for the specific account.
| Account model | Typical Daily Loss status | What to check |
|---|---|---|
| Rapid | Disabled by design on current standard templates | Confirm the account dashboard |
| Classic | Enabled on current standard templates | Check limit, 25% Profit Room and live breach level |
| Discipline | Enabled on current standard templates | Check limit, 25% Profit Room and live breach level |
| Instinct | Disabled on the current standard template | Instinct uses its separate Trailing Drawdown rule |
| Qualified / Straight | Depends on the generated Qualified Account snapshot | Follow the dashboard and account rule snapshot |
Near-breach warnings and Protection pause
FairTicks may show warnings as live equity approaches the active Daily Loss breach level. Depending on Trader Settings and account configuration, a Protection pause may restrict new exposure while still allowing positions to be closed.
Near-breach warnings and Protection pause do not move the breach level, increase the Daily Loss Limit, reset the account, or create a grace period.
What happens on a Daily Loss breach?
- The Daily Loss breach is recorded.
- Open positions are handled through the official breach process.
- The account status changes to
BREACHED. - Trading is disabled for that account.
- Only an eligible lifecycle option, such as a permitted reset, may allow the trader to continue.
A Daily Loss breach is not reversed because the market later moves back in the trader’s favor.
Common mistakes to avoid
Thinking only closed trades count
Daily Loss uses live equity, so unrealized PnL from open positions counts.
Assuming every account has Daily Loss
Rapid and Instinct do not use Daily Loss on current standard templates. Classic and Discipline use Fixed Floor with 25% Profit Room.
Assuming Fixed Floor can never move
Under Fixed Floor, protected intraday profit can raise the breach level according to the configured Profit Room percentage.
Reading Profit Room as extra account capital
Profit Room only determines how much current-day profit remains available as additional Daily Loss room. It does not increase account capital or change Maximum Loss.
Ignoring commissions
Commissions reduce balance and live equity, so they consume Daily Loss room.
Holding positions across reset without checking equity
Open PnL can affect the next day’s starting reference and can create significant reversal risk after reset.
Common questions
Does Daily Loss use balance or equity?
It uses live equity: balance plus unrealized PnL from open positions.
Can an open position breach Daily Loss?
Yes. An unrealized loss can push live equity to or below the active breach level.
What happens exactly at the breach level?
Equality is a breach. If live equity touches or falls below the breach level, the account breaches immediately.
Is there a Daily Loss time buffer?
No. Daily Loss has no breach-duration buffer.
Does profit move the breach level upward?
Yes, under the current Fixed Floor model, protected intraday profit can move the breach level upward. Current standard Classic and Discipline Accounts use 25% Profit Room.
Is Daily Loss the same as Trailing Drawdown?
No. They are separate rules with separate configurations. Daily Loss resets each trading day. Trailing Drawdown follows the account’s lifetime high-water mark where enabled.
Do commissions count?
Yes. They reduce balance and therefore reduce live equity.
What happens if I hold a position through reset?
The position is not automatically closed solely because of the reset. Its unrealized PnL can affect the new daily start equity.
Can I breach shortly after reset?
Yes. A reversal in an open position or new losses can push live equity to the new breach level.
Does the daily reset erase losses?
No. It only starts a new Daily Loss measurement period.
Summary
FairTicks monitors Daily Loss in real time using live equity. On current standard Classic and Discipline Accounts, the active breach level uses Fixed Floor with 25% Profit Room. The account breaches immediately when live equity touches or falls below that level.
Check the method and live breach level displayed in your dashboard, and keep live equity strictly above it.
Daily Loss is based on live equity, but its breach level depends on the account’s active method.
Current Classic and Discipline Accounts use Fixed Floor with 25% Profit Room. Rapid and Instinct do not use Daily Loss. There is no Daily Loss grace period, and touching the breach level is a breach.