Daily loss limits in prop challenges: check the baseline before configuring SEPAR

One percentage, several definitions

A daily loss percentage is inseparable from its calculation method. A firm may measure it against start-of-day balance, equity, initial capital or another baseline. Floating profit and loss, commissions and swaps may also count. Read the current rules for the specific challenge rather than relying on a popular percentage online. Ask the firm for written clarification where the wording is ambiguous.

The daily reset matters

The firm’s trading day may not reset at midnight on your device or broker server. Daylight-saving changes and positions held across the boundary can change the remaining allowance. Record the timezone, reset time and treatment of open trades. The same percentage applied to different baselines produces different trigger levels.

What SEPAR measures

SEPAR compares account equity against local baselines in your MetaTrader terminal. Its daily calculation uses a local day anchor, while total drawdown uses peak equity. It does not reproduce every prop firm’s rulebook. Check the calculation method, timing and account type before using it; entering the firm’s percentage alone does not establish compatibility.

An order request has limits

At the trigger, the EA may request an opposite market order for net lots on the current chart symbol. Monitoring whole-account equity does not mean all symbols are automatically hedged. A request can be delayed, rejected or filled differently. On a netting account it may reduce, close or reverse exposure. Check whether the challenge permits hedging and EAs before installation.

Before taking action

Check daily and total loss definitions, baselines, reset times, EA permissions, account mode, opposite-order costs and terminal connectivity. Copy the recorded web settings manually into the EA source and test compatibility outside the challenge. Saving the web form does not configure the terminal.

Conclusion

Prop Shield is a challenge-oriented configuration of SEPAR, not pass insurance or a guaranteed loss cap. A hedge does not erase floating loss, and account recovery is not guaranteed. Consider the tool only after understanding the firm’s rules and its technical limits.

Prop Shield overview · Setup guide · How SEPAR works