What is Daily Loss Limit (Soft Breach vs Hard Breach)?
A Daily Loss Limit (DLL) is the maximum dollar or percentage loss an account may incur within a single trading session (including open floating losses and commissions). Depending on the prop firm, hitting the daily limit triggers either a Soft Breach (session pause) or a Hard Breach (permanent termination).
Mathematical Calculation
In Forex prop firms (FTMO, Funding Pips), the daily limit resets at midnight Server Time based on the higher of starting balance or starting open equity—meaning holding a +$2,000 unrealized winner through rollover raises your daily breach floor by $2,000!
Real-World Numerical Simulation
The Midnight Rollover Floating Profit DLL Trap (Forex CFDs)
Day 1 Close: Closed balance is $100,000, but you hold an open swing trade at +$3,000 floating profit ($103,000 equity).
Midnight Server Rollover: New day's starting equity is recorded as $103,000.
New Daily Loss Floor: $103,000 - $5,000 (5% of initial balance) = $98,000.
The Trap: If your open trade reverses from +$3,000 to -$2,100 ($97,900 equity), you suffer a Hard Breach of the 5% Daily Loss Limit even though your account is only down 2.1% from starting balance!
Playbook Active Enforcer & Per-Account Auto-Pause Caps
Don't wait for a prop firm Hard Breach. Set your personal Max Daily Loss inside your Master Playbook (and individual follower settings in the Connections Hub) so LogToLast automatically pauses the account, blocks webhooks, or force-closes unauthorized trades first!
Institutional Comparison Matrix
| Prop Firm | Daily Loss Limit | Reset Basis | Breach Consequence |
|---|---|---|---|
| FTMO / Funding Pips | 3% – 5% of Initial Balance | Higher of Balance or Equity at 00:00 Server Time | Hard Breach (Immediate account termination) |
| MyFundedFutures (Builder) | Soft Daily Loss Limit | 5:00 PM EST Daily Settlement | Soft Breach (Pauses trading until 6 PM EST; account safe) |
| Lucid Trading | Customizable Soft DLL or No-DLL | End-of-Day Settlement | Soft Breach (Or $0 DLL if No-DLL add-on selected) |
| Tradeify / Apex | None ($0 Hard DLL on Flex/Apex) | Controlled by Max Trailing Drawdown | No daily breach possible |
Monitored Prop Firms Applying This Rule
Frequently Asked Questions
Stop Tracking Daily Loss Limit (Soft Breach vs Hard Breach) Manually in Spreadsheets
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