What Is It?
The Max Loss Limit (MLL) is the maximum amount a trader can lose before their account is closed. At Lucid Trading, we use an End-of-Day Drawdown (EOD Drawdown) system to calculate MLL, which is based on the account’s highest closing balance rather than intraday fluctuations.
This approach provides a more trader-friendly experience by focusing on realized performance rather than penalizing temporary gains.
How It Works in LucidTest & LucidPro
In both LucidTest and LucidPro accounts:
At the end of each trading session, the system calculates the account’s highest closing balance
The MLL increases as your balance grows, up to a defined point
Once your account exceeds the Initial Trail Balance, the MLL locks and no longer moves
Account Size | MLL Amount | Initial Trail Balance | Locked MLL Balance |
$50,000 | $2,000 | $52,100 | $50,100 |
$100,000 | $3,000 | $103,100 | $100,100 |
$150,000 | $4,500 | $154,600 | $150,100 |
How It Works in LucidDirect
LucidDirect uses the same EOD Drawdown method as LucidTest and LucidPro. The only difference is the MLL values and trail balances for applicable account sizes.
Account Size | MLL Amount | Initial Trail Balance | Locked MLL Balance |
$50,000 | $2,000 | $52,100 | $50,100 |
$150,000 | $6,000 | $156,100 | $150,100 |
As with the other account types:
The MLL rises with your closing balance until it reaches the trail
Once the account exceeds the trail, the MLL locks at the initial balance plus $100
Why Do We Use It?
The Max Loss Limit gives traders a clear boundary for risk. The EOD Drawdown method was chosen because it:
Rewards actual gains instead of punishing unrealized profit
Avoids premature liquidation due to intraday volatility
Is widely considered the most trader-friendly drawdown calculation method available
At Lucid Trading, we believe in helping traders build sustainable careers, and that starts with fair and transparent risk parameters.