TL;DR: The Maximum Loss Limit (MLL) is the total amount you can lose before your account is breached. Rather than tracking losses in real-time, the EOD trailing system calculates your loss limit based on your highest closed account balance at the end of each trading day. Once your account balance reaches $52,100 or higher, the MLL permanently locks at $50,100 and will not trail upward again.
What is an End-of-Day (EOD) Trailing Maximum Loss Limit?
The Maximum Loss Limit (MLL) protects the account from major drawdowns. "End-of-Day Trailing" means your loss floor is not tied to real-time, floating equity during the trading session. Instead, the floor adjusts at the end of each trading day based on that day’s highest closed balance.
What is the baseline floor for a $50K account?
On a $50,000 account size, you have a $2,000 Maximum Loss Limit.
Starting Loss Limit: When you first open the account, your minimum allowed balance is $48,000 ($50,000 - $2,000).
How does the trailing loss work?
Let's look at how the maximum loss limit shifts day-by-day based on your trading performance:
Day 1 (Profitable Day):
You start at $50,000 and close the day with a $1,000 profit, making your balance $51,000.
Calculation: $51,000 - $2,000 = $49,000.
Result: Your new loss floor moves up to $49,000.
Day 2 (Hitting the Lock Zone):
You earn another $1,100, bringing your total balance to $52,100.
Calculation: $52,100 - $2,000 = $50,100.
Result: Because the calculation reaches $50,100 (initial balance + $100), the Maximum Loss Limit is permanently locked here. It will never trail any higher, even if your account continues to grow.
Day 3 (A Losing Day):
Your balance drops by $600, bringing your account down to $51,500.
Result: The MLL does not move down. It stays safely locked at $50,100.
Day 4 (Massive Growth Day):
Your balance jumps up by $3,500, hitting a high of $55,000.
Result: Because the floor is locked, the MLL remains exactly at $50,100. You now effectively have a much larger buffer ($4,900 of drawdown room) because your floor stopped trailing upward.
What happens to the MLL when I take my first Performance Reward?
If you request a withdrawal and your loss limit hasn't reached the lock zone yet (meaning it is still below $50,100), the first withdrawal will automatically bring and permanently lock your MLL floor at $50,100.