Risk Management
Max daily loss is a rule that stops a bot or account from opening new positions once the realised and unrealised loss for the day reaches a chosen amount or percentage; trading resumes automatically when the day rolls over.
Most large losses are clusters, not single trades: a volatile session, a channel that keeps firing into the same move, or a news release that hits five open positions at once. A daily limit turns an open-ended bad day into a bounded one. Prop firms enforce the same rule on their side, typically 4 to 5 percent of the starting balance, and breaching it fails the challenge on the spot, so an automated limit set slightly below the firm's is a basic requirement rather than an option. The day boundary matters too: the firm's day may roll at a different time than the exchange's.
AlgoVesta's daily loss limit is set per bot in the wizard, as an amount or a percentage. The day is counted in UTC, and the counter includes closed trades from that day plus the open profit or loss of running positions where the venue reports it. When the limit is reached, new signals are blocked with a visible reason; positions already open keep their stop-loss and take-profit and are not closed by the platform. The lock releases automatically at the start of the next UTC day and does not extend itself: a limit that was computed relative to the current time would never expire, so it is anchored to the day boundary. Blocked signals are shown on the bot card and in the dashboard so you can see what the rule prevented. The feature is described on the prop firm automation page and on the Forex on MetaTrader page.
A prop-firm account has a 5% daily loss rule on a $50,000 balance, so $2,500. The trader sets AlgoVesta's limit at $1,800. During a news spike three open positions are stopped out for a combined $1,650 and the next signal's open loss brings the day to $1,820. The bot blocks further entries for the rest of the UTC day; the firm's limit is never approached, and trading resumes the next morning.