How to Manage the "Daily Loss Guard" on the Zero Plan

The Daily Loss Guard on Alpha Futures Zero Plan locks your account at 2% daily loss ($1,000-$3,000 depending on size). It's not a hard breach—you don't lose your account—but it flattens positions, cancels orders, and prevents trading until 6PM ET next day.

That forced exit costs more than the 2% itself. Missing reversals. Watching stopped positions run without you. Sitting locked out while your setup triggers.

Here's how the DLL works on Zero, why it's stricter than other plans, and the position sizing strategies that keep you trading.

Quick heads-up: This article is based on my real experience with Alpha Futures and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check Alpha Futures's website or their help center.

What Is the Daily Loss Guard on Zero Plan?

The Daily Loss Guard is a 2% soft breach applying only to qualified Zero accounts (not evaluations). Once funded, the DLL activates.

Limits by account size:

• 50K: -$1,000 max daily loss
• 100K: -$2,000 max daily loss
• 150K: -$3,000 max daily loss

Hit -2% and three things happen: positions flatten, orders cancel, account locks until 6PM ET next day.

Calculated from starting balance, not current balance. A 100K account always has -$2,000 DLL whether your balance is $100K or $110K.

How the Daily Loss Guard Triggers (Realized + Unrealized)

DLL tracks total P&L—both closed trades and open positions.

Three ways it triggers:

1. Closed losses: Three trades at -$400, -$350, -$300 = -$1,050 on 50K account. Breached.

2. Open positions: Holding 2 MNQ down -$960 unrealized. Take another position down -$50. Total -$1,010. Breached.

3. Combined: -$700 closed + -$350 unrealized = -$1,050. Breached.

The system doesn't care if losses are realized or floating. You can't hide from DLL by holding losing positions open.

Position Sizing to Stay Under 2%

Most DLL violations happen because traders size for the 4% MLL, not the 2% DLL.

The killer: 50K account has $2,000 MLL but $1,000 DLL. Trader sizes 4 MNQ contracts with $500 stops thinking "I have $2,000 room." Two bad trades = -$1,000. DLL triggered.

Correct sizing based on DLL:

• 50K (-$1,000 DLL): Max 2 trades at -$400 each
• 100K (-$2,000 DLL): Max 2 trades at -$800 each
• 150K (-$3,000 DLL): Max 2 trades at -$1,200 each

MNQ example (each tick = $2):

100-tick stop = $200 per contract on 50K account:

• 5 contracts × $200 = -$1,000 (breach on one stop)
• 3 contracts × $200 = -$600 (safe for one stop + second partial)

Rule: Size so 2 full stops don't exceed 80% of DLL. Gives buffer for slippage and multiple trades.

Stop Loss Strategy: DLL Is Emergency Protection, Not Your Primary Stop

Alpha states: "DLL should NOT replace a stop loss nor will it return exact fills of a 2% loss."

Slippage and fast markets mean you might fill at -$1,050 before the system flattens you.

Proper strategy:

1. Set hard stops on every position
2. Monitor combined P&L (closed + open)
3. Reduce size or stop trading at 50-60% of DLL
4. Let DLL act as backup, not primary control

Example: 50K account, -$1,000 DLL. First trade stops at -$300 (30% used). Second stops at -$300 (60% used). Stop trading. You have $400 left, but slippage could eat that in one position.

Monitor DLL in Real-Time (Dashboard Check Before Every Trade)

Alpha provides DLL tracking in your dashboard. Before opening positions, ask: "If this hits my full stop, will I trigger DLL?"

What to monitor:

• Current P&L (closed)
• Open P&L (unrealized)
• Combined total (what matters)
• DLL remaining

Closed losses at -$600, taking position with -$500 risk = -$1,100 combined on 50K. That triggers DLL. Reduce size or stop for the day.

What Happens When You Hit DLL

Combined P&L reaches -2%: positions flatten at market, orders cancel, account locks until 6PM ET next day. No trading access.

MLL stays intact. 50K account still has $2,000 MLL—you only used $1,000. But you're locked out.

Next day at 6PM ET: account unlocks, DLL resets to -2%, trade normally. Previous loss still counts toward MLL.

Lock is temporary. Loss is permanent (until you make it back).

Common Mistakes That Trigger DLL

Scaling into losers: Down -$400, add another contract to average down, now -$800. Add third, -$1,200. DLL triggered.

Holding and hoping: Position goes against you. Hold for reversal instead of stopping at -$200. Goes to -$600. One more bad trade triggers DLL.

Ignoring unrealized: "Only down -$400 closed" while holding -$700 unrealized. Total -$1,100. DLL triggers unexpectedly.

Revenge trading: Stop out -$500, jump into emotional trade, stop out -$600. DLL triggered. Locked out 24 hours.

Bottom Line: Respect 2% or Get Locked Out

Zero Plan DLL prevents you from blowing accounts in one session—but only if you manage it correctly.

Size positions so two stops don't exceed 80% of DLL. Set hard stops on every trade. Monitor combined P&L (closed + unrealized). Stop trading after using 50-60% of daily limit.

DLL resets daily. MLL doesn't. Triggering DLL wastes a day. Blowing MLL ends your account.

Next Steps

👉 Start Trading at Alpha Futures Today

👉 Read My Full Alpha Futures Review

👉 Alpha Futures Payout Rules

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