LucidDirect Daily Loss Limit Explained

LucidDirect funded accounts use a two-phase Daily Loss Limit: Fixed DLL initially ($1,200 on $50K, $3,600 on $150K), transitioning to LucidScale DLL at 60% of highest profit after exceeding Initial Trail Balance. The $25K account has no DLL at all.

Learned the hard way: I've breached Lucid accounts, passed Lucid accounts, and spent 18+ months figuring out which rules trip traders versus which ones are manageable. This reflects trial-and-error experience—including my mistakes.

The single most important rule at Lucid is the EOD trailing drawdown—it's fundamentally different from intraday drawdown most firms use, and that difference changes how you size positions and manage risk during volatile sessions. I broke it down in my complete max drawdown guide, including real scenarios and exactly how to calculate safe position size. For the absolute latest, check Lucid Trading's website or their help center.

What Daily Loss Limit Means

Daily Loss Limit is the maximum you can lose in one day before the platform restricts new trades until next session. It's a soft breach—your account stays active, you're just locked out of trading until next day. This differs from Max Loss Limit violations which immediately terminate accounts.

Fixed DLL: Initial Phase

LucidDirect accounts start with Fixed Daily Loss Limits that remain constant until you exceed the Initial Trail Balance threshold.

$25K unique: No Daily Loss Limit ever. Lose any amount in one day without DLL restriction, as long as you don't close below Max Loss Limit.

$50K and $150K: Enforce strict dollar limits initially. $50K cannot lose more than $1,200 daily, $150K cannot lose more than $3,600 daily, until closing above Initial Trail Balance.

LucidScale DLL: Performance-Based Phase

Once your account closes above Initial Trail Balance ($52,100 for $50K, $156,100 for $150K), Fixed DLL permanently switches to LucidScale at 60% of highest end-of-day profit.

Formula: Highest EOD Profit × 60% = LucidScale DLL

Example: $50K account closes Day 5 at $54K ($4K profit). LucidScale DLL = $4K × 0.60 = $2,400. Can lose up to $2,400 daily going forward.

Increases only: Hit $56,500 close ($6,500 profit) later? DLL recalculates to $6,500 × 0.60 = $3,900. Experience drawdown to $53K afterward? DLL stays $3,900 (based on $6,500 highest). Never decreases, only increases.

Fixed vs LucidScale Comparison

Transition from Fixed to LucidScale typically expands daily risk capacity.

$50K: Start with $1,200 Fixed DLL. Close at $53K ($3K profit) triggering transition. New DLL = $3K × 0.60 = $1,800. Gained $600 capacity. Close at $55K ($5K profit) later? DLL = $3,000 (2.5x original $1,200).

$150K: Start with $3,600 Fixed. Close at $160K ($10K profit) triggers $6,000 DLL. Gained $2,400 capacity immediately.

Soft Breach Mechanics

Hit your DLL and the platform restricts new trades until next session. Existing positions aren't closed—you just can't open new ones. Your account remains active (soft breach, not termination).

DLL resets daily. Lose $1,100 today on $50K with $1,200 Fixed DLL? Tomorrow you start fresh with full $1,200 capacity. Previous day's loss doesn't carry over.

Bottom Line

LucidDirect uses Fixed DLL ($1,200 on $50K, $3,600 on $150K) transitioning to LucidScale DLL at 60% of highest profit once you close above Initial Trail Balance. The $25K account has no DLL ever, making it uniquely flexible for intraday volatility.

LucidScale DLL increases with demonstrated profitability but never decreases during drawdowns, providing expanding risk capacity as you grow the account. Hitting DLL is a soft breach restricting trading until next session—not an account termination. The daily reset gives you fresh capacity every session regardless of previous day's performance.