What is a Daily Loss Limit (Daily Loss Guard)? (2026)

At Alpha Futures, Daily Loss Guard (DLG) is a daily risk limit used on Zero accounts. It is a soft lock, not an automatic account failure by itself. If your daily loss reaches the DLG threshold, open positions are flattened, pending orders are canceled, and trading is locked until the next trading day (6 PM ET).

Part of our futures prop firm guide series: What is a Futures Prop Firm? · What is the Profit Target? · What is the Consistency Rule?

Last verified: June 2026

General information only. Simulated trading. Performance fees are performance-based; outcomes not guaranteed.

Daily Loss Guard

Daily Loss Guard is your max allowed loss for one trading day.

Most traders understand this better with one sentence: you can have a good long-term strategy and still blow a day if you keep trading after the session goes wrong.

Daily Loss Guard exists to stop that spiral. On Alpha Futures Zero, it acts like a firm-set daily loss lock for that trading day. If that level is hit, trading pauses for the rest of the day. You come back on the next session and continue from there.

So this is not a random extra rule. It is a daily damage-control rule.

Alpha Futures Daily Loss Guard thresholds

Alpha Futures help centre states DLG on Zero accounts is 2% of starting balance.

Zero account size	Daily Loss Guard
25K Zero	$500
50K Zero	$1,000
100K Zero	$2,000

Daily Loss Guard, Zero overview

What happens when DLG is hit

When the threshold is reached, Alpha Futures explains the following behavior:

open positions are flattened
pending orders are canceled
new orders are blocked
account unlocks at next trading day (6 PM ET)

The key point is this: DLG is described as a soft lock, not a direct account termination rule on its own.

Which plans use Daily Loss Guard?

Zero: preset DLG applies
Advanced: no preset DLG
Premium: no preset DLG

Advanced and Premium traders can still set their own daily limit in platform risk controls, but there is no preset Alpha Futures DLG threshold on those plans.

Daily Loss Guard, Advanced overview, Premium overview

Daily Loss Guard vs MLL

These are different controls:

Daily Loss Guard: one-day threshold
MLL: account-level max loss threshold

A trader can hit DLG and get a soft lock for the day.
A trader can also breach MLL, which closes the account.

This is where traders confuse rules:

DLG asks, "How much can I lose today?"
MLL asks, "How much drawdown room is left on the account?"

You need both numbers in view. If you only monitor one, you can still end your session with a failed account.

Read: Maximum Loss Limit (MLL) · EOD Trailing Drawdown vs Intraday Drawdown

Practical example

Example on 50K Zero:

DLG = $1,000
If daily unrealized + realized P&L reaches -$1,000, DLG triggers
Open trades are flattened
New trades are blocked until next trading day

This is why many futures prop firm US traders track both daily risk and account-level MLL at the same time.

Another practical point: the DLG calculation includes unrealized and realized P&L, and it also includes simulated commissions and fees per the help-centre description. So do not wait for "closed trades only" when monitoring your daily number.

Why traders hit DLG even with a solid strategy

In most cases, it is not because the strategy suddenly stopped working. It is because risk behavior changed in-session. Common pattern:

early loss
size-up to recover quickly
one more emotional entry
threshold hit

That is why DLG should be treated as a boundary you respect, not a line you test.

How to use DLG without confusion

Know your exact threshold by account size
Set your own stop before DLG level
Do not treat DLG as your plan target, treat it as your hard daily boundary
Keep checking MLL separately
If you get close to DLG, reduce size, not discipline

What is daily loss limit in a futures prop firm?

It is a per-day loss threshold. If reached, trading is restricted for the rest of the session under the published risk model.

Is Daily Loss Guard the same as MLL?

No. DLG is daily. MLL is account-level.

Does Alpha Futures use Daily Loss Guard on all plans?

No. Alpha Futures publishes preset Daily Loss Guard on Zero accounts. Advanced and Premium have no preset DLG.

Is Daily Loss Guard an instant account failure?

No. Alpha Futures describes DLG as a soft lock rule. It pauses trading for the day.

Is Daily Loss Guard based only on closed trades?

No. The help-centre article explains DLG uses daily P&L including unrealized and realized values, plus simulated commissions and fees.

What are Daily Loss Guard values on Zero?

25K: $500, 50K: $1,000, 100K: $2,000.

Simulated evaluations and Qualified Accounts use simulated funds. Performance fees are performance-based; outcomes not guaranteed.