Daily Loss Limit (DLL)
Summary: The Daily Loss Limit pauses your trading for the day when you reach a specified loss threshold. Unlike the Max Trailing Drawdown, hitting the DLL does NOT fail your account - you can resume trading the next session.
Applies to: Growth, Lightning, and Select Daily Funded accounts. Select Flex accounts do not have a DLL.
Critical Warning
NEVER use the DLL as a stop loss. The DLL is not a hard stop - losses may exceed the limit before the system triggers protection. Using the DLL as a stop loss strategy in volatile markets may cause slippage that breaches your Max Trailing Drawdown, which WILL fail your account. Tradeify is not responsible for losses if you rely on the DLL as your stop.
How the DLL Works
The Daily Loss Limit is a "soft breach" - it pauses trading for the day but does NOT fail your account:
When your daily losses reach the DLL, trading is paused
You can resume trading the NEXT market session (after 6:00 PM ET)
Your account remains active as long as you haven't hit the Max Trailing Drawdown
DLL vs Max Trailing Drawdown
These are two separate risk limits that work differently:
Daily Loss Limit (DLL): Resets each trading day. Hitting it pauses trading until next session. Soft breach - account stays active.
Max Trailing Drawdown: Tracks your highest balance. Hitting it FAILS your account permanently. Hard breach.
Important: If your Max Trailing Drawdown is closer than your DLL, you could hit the drawdown first and fail your account before the DLL triggers.
Initial DLL Amounts
When you start a Growth, Lightning, or Select Daily Funded account, your DLL is:
Account Size | Growth/Lightning DLL | Select Daily DLL |
25K | $600* | $500 |
50K | $1,250 | $1,000 |
100K | $2,500 | $1,250 |
150K | $3,000 | $1,750 |
*25K Lightning accounts do not have Daily Loss Limit protection.
DLL Increases at 6% Profit
When your account reaches 6% profit (balance reaches the threshold below), your DLL increases to match your drawdown amount. This larger DLL takes effect the NEXT trading session, not immediately.
Account | Balance Required | Lightning DLL Becomes | Growth DLL Becomes |
25K | $26,500 | N/A | $1,000 |
50K | $53,000 | $2,000 | $2,000 |
100K | $106,000 | $4,000 | $3,500 |
150K | $159,000 | $5,250 | $5,000 |
Legacy Accounts (Purchased Before September 12, 2025)
If your account was purchased before September 12, 2025 at 8:00 AM EST, you have the legacy DLL rules. When you reach the 6% profit threshold, your DLL is completely REMOVED (not just increased).
Example Scenario
Starting a 100K Growth account:
Starting balance: $100,000
Daily Loss Limit: $2,500
Max Trailing Drawdown: $3,500 from high water mark
If you lose $2,500 in one day, the DLL triggers and trading pauses. You can trade again tomorrow.
Warning: If your high water mark is $101,000 and current balance is $99,000, your drawdown is only $2,000 away. Losing $2,500 would hit the drawdown BEFORE the DLL, failing your account.
Frequently Asked Questions
Q: Do Select accounts have a DLL?
A: It depends on your payout policy. Select Daily funded accounts have a DLL ($500 for 25K, $1,000 for 50K, $1,250 for 100K, $1,750 for 150K). Select Flex (5-Day) funded accounts do not have a DLL - only the Max Trailing Drawdown applies.
Q: Does the DLL reset each day?
A: Yes. The DLL resets at the start of each trading session (6:00 PM ET). Yesterday's losses don't count toward today's limit.
Q: When does the increased DLL take effect?
A: When you reach the 6% profit threshold, your new DLL takes effect the NEXT trading session - not immediately. If you reach $53,000 on a 50K account during Monday's session, the increased DLL applies starting Monday evening at 6:00 PM ET.
Q: Can I still fail my account if I hit the DLL?
A: Hitting the DLL alone does not fail your account. However, if your Max Trailing Drawdown is closer than your DLL, you could breach the drawdown first, which DOES fail your account.
Q: What's the difference between legacy and new DLL rules?
A: For accounts purchased before September 12, 2025, the DLL is completely removed at 6% profit. For accounts purchased after, the DLL is increased (to $1,000/$2,000/$3,500-4,000/$5,000-5,250 for 25K/50K/100K/150K) but not removed.