How to Set Your Own Daily Loss Limit on Rithmic and Tradovate

Category: Risk Management | Date: 2026-11-07

The Problem: Your Daily Limit Is Only a Number in Your Head

Every funded trader has a daily loss number. Few have anything that enforces it. On a prop account, the daily limits at the broker (Rithmic or Tradovate) are usually the firm's rules, not a personal number you set and tune yourself, and they do not let you choose which P&L counts or lock in a profit target.

That leaves discipline as the only control, and discipline is weakest exactly when you need it: two losses in, the market chopping, a revenge trade looking obvious. The fix is to take the decision away in advance. Signal Trade App's Daily P&L Lock does that on Tradovate and Rithmic accounts.

How the Daily P&L Lock Works

Open <a href="/risk">Risk Mgmt</a> and find the account card.
Under Account Lockout, enter a Daily loss limit. Optionally add a Daily profit target.
In the Count dropdown, choose what counts: Realized + open (net), Realized only (closed trades), or Open only (unrealized).
Click Save settings.

When today's P&L reaches the loss limit or the profit target, Signal Trade App closes all positions, cancels working orders and locks the account until the next session opens at 6:00 PM ET. The card shows LOCKED · P&L LIMIT, you are notified, and the account receives no copies while locked.

Choosing What Counts

Option	Counts	Good for
Realized + open (net)	Closed trades plus open P&L. Default. Same definition as the Tradovate daily loss limit and the Topstep personal daily loss limit.	Most traders. The limit reacts to a position that is deeply underwater, not only to closed losses.
Realized only	Closed trades only.	Traders who hold through noise and judge the day by banked results.
Open only	Unrealized P&L only.	Capping how far one live position can run against you.

If you are unsure, leave it on net. It is the closest match to how most firms measure a bad day, so your personal number and the firm's number describe the same thing.

Where to Set the Number

Your prop firm still enforces its own daily loss limit at the broker, and breaching it can end an evaluation. The lock is useful because it sits inside that limit. A practical rule is to set your personal limit at roughly 60 to 80 percent of the firm's, as covered in the daily loss limit strategy guide.

Leave room for slippage. The lock closes positions with a market order, so in a fast market the fill can land past the number you entered. A buffer between your limit and the firm's means that overshoot costs you a little, not the account.

Example: $50K evaluation with a $1,000 firm limit

Daily loss limit: $600 (net).
Daily profit target: $900, so a good day is banked instead of given back.
If a fast move turns a $600 loss into $680 at the fill, you are still $320 inside the firm's line.

The Profit Target Lock

Most traders think of limits as loss protection. The optional daily profit target protects the other side: giving back a green day. When the target is reached, the account flattens and locks until 6:00 PM ET. For a trader who tends to overtrade after a win, or who is working toward a consistency rule, a hard stop on a good day is a risk control too.

Why You Cannot Unlock It

Once the lock trips, it cannot be unlocked, raised or removed, and the Count setting cannot be changed, until 6:00 PM ET. Tightening the limit is still allowed. The restriction is the feature. A limit you can switch off in the moment is a suggestion; a limit you cannot switch off stops the revenge trade before it starts.

Followers in a Copy Group

The lock works per account, so each follower in a copy group can carry its own limit. A locked account receives no copies, which means a follower that has hit its limit simply stops taking trades while the rest of the group keeps copying. That is helpful when your funded accounts have different sizes and different firm limits.

Limits and Fine Print

Tradovate and Rithmic accounts only. Other connection types show that daily P&L limits are not available.
One trip per account per trading day.
If open P&L goes stale (no price for about 30 seconds while holding), the lock pauses and notifies you rather than act on bad data.
The flatten is a market close. Fills in fast markets can be past your limit.
It is separate from your firm's rules, which the firm keeps enforcing at the broker.

Drawdown tracking and alerts on the same page remain notify-only, and the older session and manual lockouts still work alongside the new lock.

Set It Before You Need It

The time to choose a daily limit is before the session, not during a drawdown. Pick the number, save it, and let the account enforce it. Start a trial, connect your Tradovate or Rithmic accounts, and set a Daily loss limit on your next funded account.

Frequently Asked Questions

Can I set my own daily loss limit on Rithmic?

Rithmic does not give traders a daily loss limit they can configure. On Rithmic accounts connected to Signal Trade App you can set one with the Daily P&L Lock, which closes positions and locks the account until 6:00 PM ET when the limit is reached.

Is the Daily P&L Lock the same as my prop firm's daily loss limit?

No. Your firm enforces its own limit at the broker. The lock is a separate, personal limit that you set tighter, plus an optional profit target.

What happens when the limit is hit?

All positions are closed, working orders are cancelled and the account is locked until the next session opens at 6:00 PM ET. A locked account receives no copies, and you are notified.

Can I raise or remove the limit after it trips?

No. Until 6:00 PM ET it cannot be unlocked, raised or removed, and the Count setting is fixed. You can tighten it.

Which accounts support it?

Tradovate and Rithmic accounts, including prop firm accounts on those platforms. It is not available on other connection types.

Can I lose more than my limit?

Possibly. The lock flattens with a market close, so fills in a fast market can land past the limit. Keep a buffer inside your firm's limit.

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