A loss limit is a decision made before the outcome
The purpose of a daily limit is not to predict whether the next trade will win. It caps the amount of session risk the trader intended to accept before the session began. Without a firm boundary, the limit can become a moving target after each loss.
Manual tracking can also diverge from the broker account because of commissions, realized and unrealized P&L, fills, or activity the trader did not record. Monitoring the supported broker connection gives the control system direct account context, while the broker remains the authoritative source.
How the Shomerion loss-limit workflow operates
- The trader enters a maximum daily loss as part of the active rules.
- The rules can be locked for the selected duration.
- The cloud monitor reads account state from the configured TradeZero or Binance connection.
- Shomerion evaluates the daily state against the loss rule.
- At a breach, the guard can stop and attempt enabled cancellation and position-closing actions.
The loss limit works alongside trade-count and trading-window rules. A session can therefore stop because one boundary was reached even if the others were not.
The monitored threshold is the trigger for an attempted response, not a promise that final P&L will equal that number. Data latency, network or broker outages, order rejection, partial fills, slippage, price gaps, and market conditions can all affect the outcome.
Choose and supervise the rule responsibly
Shomerion does not calculate the correct loss limit for a trader and does not provide investment advice. A user should choose a limit consistent with their own account, strategy, and risk tolerance; verify the correct broker account; grant only needed permissions; and keep direct access to the broker.
After a breach, review broker records and Shomerion’s journal or audit context. Do not assume an automated response completed without confirming positions and orders at the broker.
Frequently asked questions
What is a daily loss limit in trading?
It is a predetermined account loss boundary for a trading day. The trader chooses the amount as part of their own risk plan.
How does Shomerion monitor a daily loss limit?
Shomerion reads supported broker account data, calculates the relevant daily state, and compares it with the active user-configured rule.
Can a daily loss limit guarantee my losses stop at that exact amount?
No. Price movement, slippage, gaps, delayed data, API or network problems, rejected orders, and partial fills can cause actual losses to exceed the configured threshold.
Can I raise the limit after losing?
If the rules are actively locked, Shomerion prevents loosening protected limits until the configured lock expires.