Daily Drawdown 10% Trading Lock

The Daily Drawdown 10% Trading Lock is a mandatory account protection mechanism. It is applied automatically and is separate from the configurable Daily Equity Drawdown rule in Trader's Guard.

Its purpose is to stop additional trading losses after the account loses 10% of its adjusted starting equity during one MT5 server day. You do not need to enable or configure this protection.

Terms to understand first

• Balance: The account value after closed trades and funding transactions. It does not include profit or loss from positions that are still open.
• Equity: Balance plus the current floating profit or loss of all open positions.
• Floating loss: An unrealized loss on an open position. Because it reduces Equity, it counts toward the daily drawdown calculation even before the position is closed.
• MT5 server day: The trading day used by the platform. The current WebTrade warning identifies the reset time as 00:00 UTC+2.

How daily drawdown is calculated

The system monitors the account's current equity against an adjusted daily baseline:

Adjusted daily baseline = Start-of-day equity + Deposits today - Withdrawals today

Daily drawdown (%) = (Adjusted daily baseline - Current equity) / Adjusted daily baseline × 100

Deposits and withdrawals made during the day are included so that funding activity does not incorrectly trigger the protection.

The protection activates when the calculated daily drawdown is equal to or greater than 10%.

Simple example without deposits or withdrawals

Assume the account starts the MT5 server day with Equity of 10,000 USD:

• Adjusted daily baseline: 10,000 USD.
• 10% of the baseline: 1,000 USD.
• Equity level that triggers the lock: 9,000 USD.

If current Equity falls to 9,000 USD or lower, daily drawdown has reached at least 10% and the trading lock activates.

This can happen because of closed losses, floating losses, or a combination of both.

Example with a deposit

Assume the account starts the day with Equity of 10,000 USD and then receives a deposit of 1,000 USD:

• Adjusted daily baseline: 10,000 + 1,000 = 11,000 USD.
• 10% of the adjusted baseline: 1,100 USD.
• Equity level that triggers the lock: 9,900 USD.

The deposit increases both account funds and the comparison baseline. It is not treated as trading profit.

Similarly, a withdrawal reduces the adjusted baseline so that the withdrawal itself is not treated as a trading loss.

What happens when daily drawdown reaches 10%?

When the account's daily drawdown reaches the 10% limit, the system:

• Disables trading for the account.
• Rejects new market and pending orders.
• Attempts to close open positions.
• Attempts to cancel pending orders.
• Keeps the trading lock active until the start of the next MT5 server day.

Closing positions and cancelling pending orders are protective best-effort actions. Execution may not be immediate, and an action may fail if the market, symbol, MT5 connection, or current order state does not allow it. The account remains trading-disabled while the lock is active.

WebTrade displays the following warning:

Trading is locked because daily drawdown exceeded 10%. Trading will resume at 00:00 UTC+2.

When trading becomes available again

Trading is restored automatically at the beginning of the next MT5 server day, provided that no other account restriction remains active. You do not need to disable the protection manually.

Once the 10% lock has activated, it remains active for the rest of that MT5 server day. A later equity recovery or an additional deposit does not remove the lock early.

You cannot manually disable this protection. If another restriction is still active at the reset time, such as a Trader's Guard lock or an administrative restriction, trading remains unavailable until that restriction is also cleared.

What should I do when I see the warning?

1. Do not repeatedly submit new orders. Market and pending orders will be rejected while the lock is active.

2. Review the account's open positions, pending orders, Equity, and trading history to understand what caused the drawdown.

3. Remember that protective close and cancel actions may take time to complete.

4. Wait until the displayed reset time, then confirm that no other account restriction remains active.

5. Before trading again, consider reducing position size and reviewing your Stop Loss, Risk Amount, Auto-Lock SL/TP, and Trader's Guard settings.

Frequently asked questions

Does floating loss count before I close a position?

Yes. The protection monitors current Equity, so floating profit and loss from open positions are included.

Can I continue placing pending orders?

No. New market and pending orders are rejected while the lock is active.

Will depositing more money unlock the account immediately?

No. Funding is included in the adjusted baseline, and an active lock remains in place until the next MT5 server day.

Can support or the trader turn off this protection early?

The protection is mandatory and is not a user-configurable setting. It is designed to remain active for the rest of the MT5 server day after activation.

Will trading always resume exactly at the reset time?

It resumes automatically only if no other trading restriction remains active on the account.

Difference from Trader's Guard

• Daily Drawdown 10% Trading Lock: A mandatory system-level protection with a fixed 10% limit.
• Daily Equity Drawdown in Trader's Guard: A user-configured commitment with a selected threshold and violation action.

The mandatory 10% protection takes priority if both mechanisms are active.