hello traders in this video we explain how the maximum de loss trading objective works we have developed this trading objective so that Traders can become experienced Risk Managers with the habits of professional Traders so what is the maximum daily loss instead of describing just a theory I will sty straight with the examples so you can fully understand it we could call this trading objective Traders daily stop loss for a normal risk account type the limit is set at 5% let's take the normal risk with 5% for instance if you have a $200,000 fmo account you must never exceed the total Equity loss of $110,000 in one day and that means if you had a losing streak and the total loss would result in minus $8,000 in one trading day your permitted loss for the rest of the day would be $2,000 before exceeding the limit now bear in mind that maximum n loss works with your equity and therefore both floating positions and your cloth positions are included in the calcul and also please know that the maximum day loss resets at midnight C let's say you had a great start of the week and your Monday trading session resulted in a close profit of $4,000 your maximum permitted loss for the rest of the day is now at $4,000 if you would now open a new trade which would go into a $113,000 floating loss then up until 11:59 p. m. you would still be staying within the limit because as mentioned previously you're fromit to l for the rest of the day would be $14,000 however as I said the maximum n loss resets at midnight to EST so at 12:00 a.
m. on Tuesday your from loss is by default reset to $10,000 if you would still be carrying the $3,000 folding loss you would exceed the limit as the profits made on the previous day no longer count in a new day so let's summarize the facts the maximum day loss resets at midnight EST which means you should use the ftmo time zone converter to know when exactly does the max deoss reset in your local time so let's open the time zone converter here and let's randomly pick Tokyo time which is out at gmt+9 now as we can see the maximum de loss limit will reset exactly at 700 a. m.
