This article is for the Trailing Personal Daily Loss Limit on TopstepX™. To learn more about the Fixed Personal Daily Loss Limit on the TopstepX™ platform, click here.
It's important to note that this update is for the TopstepX™ Trading Platform only. All other trading platforms, including but not limited to, NinjaTrader, Quantower, Tradovate, and TradingView still have the Daily Loss Limit Objective in place.
Examples (Realized and Unrealized)
What’s New?
Traders now have the ability to set their Trailing Personal Daily Loss Limit to be based on realized profits, not just unrealized. When enabling trailing in your TopstepX™ settings, you can now choose to trail from either Unrealized Gains or Realized Gains. This update offers greater flexibility and customization in managing your risk.
How Does This Benefit Traders?
Protect Profits: By trailing the highest balance of the day, the feature allows traders to lock in gains while staying committed to a loss limit.
Dynamic Loss Limit: The loss limit adjusts as your balance grows, allowing traders to capitalize on good trading days without increasing their risk.
Flexibility: Choose between trailing based on unrealized (open trades) or realized (closed trades) profits to match your trading style.
Reduced Emotional Decision-Making: Automates drawdown management, helping to prevent impulsive trading decisions.
Trailing Losses
If you set a $500 Trailing Personal Daily Loss Limit with a starting balance of $50,000 and immediately start losing money, your liquidation action will trigger if your balance drops to $49,500.
Trailing Profits
Unrealized Gains: If your open trade profits increase your balance to $51,200, your new liquidation threshold moves up to $50,700, automatically locking in gains as your profits increase.
Realized Gains: If you close a trade that brings your balance to $51,200, your new liquidation threshold moves up to $50,700 upon closing the trade.
If liquidation occurs at $50,700, the system resets the action to "Do Nothing." You must manually re-enable the Trailing Personal Daily Loss Limit if this occurs.
Examples
Unrealized Trailing Example
Starting Balance: $50,000
Trailing Personal Daily Loss Limit Set To: $500
Open Trade Profit: $1,200 (unrealized)
Trade Closed: Profit of $1,000 (realized)
Balance Reflects: $51,200
Loss Limit Adjusts To: $50,700
If your balance drops to $50,700, your selected liquidation action will trigger. The limit adjusts dynamically as your unrealized profit increases, helping to protect gains even before trades are closed.
Realized Trailing Example
Starting Balance: $50,000
Trailing Personal Daily Loss Limit Set To: $500
Open Trade Profit: $1,200 (unrealized)
Trade Closed: Profit of $1,000 (realized)
Balance Updates To: $51,000
Loss Limit Adjusts To: $50,500
In this example, the loss limit remains at $49,500 until the trade is closed and the $1,000 profit is realized. Once realized, the limit adjusts to $50,500, reflecting the updated balance.
How to Set Your Trailing Personal Daily Loss Limit
Access Your Risk Settings:
Click the Settings gear.
Select "Risk Settings."
Configure Your Trailing Personal Daily Loss Limit:
Set the dollar amount of your loss limit.
Choose a loss limit action: Do Nothing, Liquidate, or Liquidate & Block.
Do Nothing: No action is taken when the limit is hit.
Liquidate: Closes open positions and orders.
Liquidate & Block: Closes trades and blocks the account for the rest of the day.
Check the box to Enable Trailing. Note: You must select "Enable Trailing" for the Trailing PDLL Type to display.
Select the trailing method: Unrealized Gains or Realized Gains.
Unrealized Gains: The loss limit adjusts in real-time as your floating profit increases.
Realized Gains: The loss limit stays static until you close a profitable trade. Once you do, it updates.
Save your changes:
Click "Lock Out Risk Settings For Day" to save your changes.
Once you've saved your changes, you'll see that you can no longer make changes to your Risk Settings. The timer lets you know when the lockout will end.
Frequently Asked Questions
What is the Trailing Personal Daily Loss Limit?
The Trailing Personal Daily Loss Limit (Trailing PDLL) is a dynamic loss limit that moves up as your balance grows throughout the day. It helps lock in profits while maintaining risk control.
How is the Trailing Personal Daily Loss Limit different from the Fixed Personal Daily Loss Limit?
A Fixed Personal Daily Loss Limit stays at the same loss limit throughout the day, while a Trailing Personal Daily Loss Limit moves up as your balance increases, allowing you to protect gains without increasing risk.
Can my Trailing Personal Daily Loss Limit go down?
No, the Trailing Personal Daily Loss Limit only moves up when your balance increases and does not trail downward if your balance declines.
Does the Trailing Personal Daily Loss Limit apply to both realized and unrealized gains?
Yes, it adjusts based on your highest balance of the day, whether from realized or unrealized profits.
What happens if my balance hits the Trailing Personal Daily Loss Limit limit?
If your balance reaches the Trailing Personal Daily Loss Limit, the system will follow your requested action: Do Nothing, Liquidate, Liquidate, and Block. As long as you don’t choose to block yourself the rest of the day, the system resets the action to "Do Nothing." You must manually reactivate the feature the next time you want to use it.
Can I change my Trailing Personal Daily Loss Limit settings during the trading day?
Yes, as long as you don’t hit your Trailing Personal Daily Loss Limit with Liquidate and Block active, you can adjust your Trailing Personal Daily Loss Limit.
Can I set up my Personal Daily Loss Limit while in a trade?
Yes, the limit will be based on your account balance at the time you save your Trailing Personal Daily Loss Limit settings.
How does “Realized Trailing” work?
When Realized Trailing is enabled, your loss limit stays fixed until you close a profitable trade. Once a profit is realized, your loss limit begins to trail behind it. This gives you more control over when the limit starts adjusting.
What’s the difference between realized and unrealized trailing?
Unrealized trailing adjusts your loss limit as your open/floating profit grows. Realized trailing only adjusts after a profitable trade is closed.
Can I switch between realized and unrealized trailing during the day?
Yes. You can change your trailing setting at any time, unless you choose to lock them out for the session using the Daily Risk Lock feature.