Daily loss limit: when the bot stops for the day
Updated:
The daily loss limit, as a percent, sets what share of the deposit the Snapback bot may lose in one day on closed trades. When the day's net loss reaches that percentage, no new trades are opened and the bot switches itself off.
What it means in plain words
It is an emergency switch for a bad day. If several trades in a row closed at a loss and together they have already cost you the chosen percentage of the deposit, the bot stops and waits for your decision instead of continuing to trade.
Why it exists
On a bad day a strategy can lose again and again: each new signal looks just like the previous ones. The limit stops a losing streak from growing into a loss bigger than the one you agreed to accept in a day.
How it works in the code
The day's loss is the sum over all trades closed since 00:00 UTC: realized result minus fees plus funding. Only closed trades count, so a position that is temporarily in the red does not affect this figure. If the owner reset the counter manually, counting starts from the moment of the reset.
The check is made twice:
- before each new trade: if the day's net result is a loss and its absolute value is not less than
deposit x percentage / 100, the signal is rejected with the reason "daily loss limit hit"; - separately, the bot checks this and switches itself off: once the limit is reached, it is turned off with the recorded reason "daily loss limit". A switched-off bot opens no new trades; trades already open stay under their stops, and this action does not close them.
The owner can reset the daily limit manually without waiting for midnight: the counter then restarts from that moment, and bots that were switched off by the limit turn on again. A bot you switched off yourself is not turned on by this.
Illustration of the mechanism only, not advice: deposit 1000 USDT, limit 10%. The threshold is 100 USDT. If the day's closed trades add up to a loss of 100 USDT or more, the bot stops. A loss of 99 USDT still allows new trades.
Allowed values and defaults
A number above 0 and not more than 100 (percent). The default is 10. In the wizard from 1 to 100.
What happens if it is higher or lower
- Higher limit: the bot withstands a bigger losing streak in a day, but the permitted daily loss is bigger too.
- Lower limit: the bot stops early and the day's loss is capped more tightly, but it can also cut off favorable streaks prematurely.
How it connects to other settings
- Max simultaneous positions: several trades can close at a loss almost at the same time.
- Coin cooldown: a pause on one coin, while this limit covers the whole account.
- Stop-loss: defines the loss of a single trade.
Common mistakes
- Expecting the limit to close open positions: it stops new entries.
- Not realizing the limit is checked on closed trades, so an open position may already be past the threshold but is not counted yet.
- Forgetting that the day is counted in UTC, not in your local time.
Where to find it in the bot wizard
The "New bot" or "Edit" form, the "Safeguards" block, the "Daily loss limit, %" field.
Frequently asked questions
What is a daily loss limit in a trading bot?
It is the percentage of the deposit the bot may lose in one day on closed trades. When the loss reaches it, the bot stops opening new trades and switches itself off.
When does a new day start for the daily limit?
At 00:00 UTC (universal time). The owner can also reset the counter manually earlier.
Are open trades that are currently at a loss counted?
No. Only the result of already closed trades is counted; an open position in the red has not lost anything yet.
What is the default?
10% of the deposit. The allowed value is more than 0 and up to 100.