Daily Max Loss. Good? Bad? | STR 513

The daily max loss. A risk management rule that has a whole lot of opinions surrounding it. I recently made a YouTube video discussing how a futures prop firm eliminated this rule. In sharing my thoughts, I received some interesting comments and wanted to address one in particular as I believe it opened the doors to explain a deeper reasoning for my logic. Whether you are trading stocks, options, future or anything else, considering where/if the daily max loss rule fits into your strategy is a wise choice to make for yourself. There are some lines of logic that do make really good sense on the surface (as the YouTube comment suggests); however, digging a bit further reveals something else that from my experience, many traders lose sight of. Let’s discuss!