How to set a daily loss limit in Quantower
Most blown accounts are not lost on one trade. They are lost on the trades after a bad one. A daily loss limit stops the day before it turns into a week.
Why a daily limit works
After a few losses in a row, judgement changes: you size up to "get it back", you take setups you would normally skip, you move stops. A daily loss limit is a decision you take before the session, when you are calm, and it holds when you are not.
The same logic applies on the other side. A daily profit target protects a good day from being given back by overtrading in the afternoon.
How to choose the number
- Start from risk per trade. A common rule is a daily limit of 2–3 losing trades. With $300 per trade, that is $600–$900.
- Relate it to the account. Many traders keep the daily loss between 2% and 5% of the account, so that a string of bad days is survivable.
- Prop firm account? Use the firm's rule as the absolute maximum and set your own limit below it, so slippage or an open position never takes you over. See prop firm daily drawdown rules.
Count open positions, not only closed trades
A limit that only counts closed trades can be broken by a position that is still open: you are at −$400 realized with a −$300 open trade, the limit is $600, and nothing happens until you close. Counting realized + open P&L catches it in real time.
When does the trading day reset?
For stocks the trading day is simple. For futures it is not: the CME Globex session for equity index futures opens at 17:00 Chicago time the evening before. If your limit resets at midnight, a loss taken at 18:00 counts on the wrong day.
17:00 in Chicago is 22:00 UTC while the US is on daylight saving time and 23:00 UTC in winter. Reset the limit at that hour and every session is measured as one day.
Enforce it, don't just track it
A number written on a sticky note is easy to ignore at the moment it matters. The limit should do something when it is reached:
- Block new orders for the rest of the session.
- Close what is open and cancel working orders, so the loss stops where you decided.
- Stay blocked even if an open position recovers — otherwise the limit becomes a suggestion.
- Survive a restart — restarting the platform must not give you a fresh limit.
Setting it up in Quantower with QT Risk Guard
QT Risk Guard, the risk plugin included with QT Risk Manager, does all of the above for every account. Open its panel settings and, in the section of your account:
- Set Max daily loss ($) and, if you want, Daily profit target ($). They count closed trades and open positions.
- Set Session reset hour (UTC) to 22 (23 in winter) for CME futures.
- Optionally: Max trades per day, a trailing drawdown and your trading hours.
When a limit is hit, the account is locked in Quantower — orders are refused from the chart, the DOM and Order Entry — working orders are cancelled and positions closed, until the next session. The lock survives a restart, and during the session a limit can only be made stricter, so it cannot be lifted to keep trading.
Related guides
Trading futures involves substantial risk of loss. This guide is educational and is not financial advice. See the risk disclaimer.