05 · Concepts
Risk Limit Chain: Which Limit Limbix Applies
When a prop firm, your check-in, an account and your settings each set a risk limit, Limbix uses the first in a fixed order. The chain and what reads it.
The risk limit chain decides which limit Limbix applies when several sources set one. For each limit it checks, in order: your prop firm's rule, today's pre-trade check-in, the trading account's own constraint, then your default in Settings. The first usable number wins. With none set, that limit simply isn't measured.
Why the risk limit order is fixed#
You can state a limit in four places. Without a fixed order, one screen could score you against your firm's €1,250 and another against the €1,000 you typed months ago.
A firm's rule comes first. It isn't negotiable, so nothing outranks it, not even a stricter number of your own.
This morning beats months ago. The limit you set in today's check-in, calm and about today, outranks a default you may have forgotten.
An unusable number falls through. A zero, a negative, a percentage with no account size, or a percentage above 100 isn't a limit, so Limbix moves to the next rung instead of stopping.
Every result is money. A % limit is converted with Account size (a firm's percentage uses the prop account's size), so a trade's risk is always compared with an amount in the account's currency.
What each rung can supply#
| Rung | Max daily loss | Max trades per day | Max risk per trade |
|---|---|---|---|
| 1. Prop firm rule | Firm's fixed amount, else its % of the prop account | Firm's cap | Firm's % of the prop account |
| 2. Today's check-in | Max loss limit | Max trades | Not asked yet |
| 3. Account constraint | The account's daily loss limit | The account's cap | None |
| 4. Your default | Max daily loss | Max trades per day | Max risk per trade |
Rungs 1 and 3 belong to one account. They apply only when every trade being scored comes from that account. When your last 30 days mix accounts, Limbix skips them and uses your check-in and your defaults, so one account's cap is never applied to another.
No screen in Limbix sets an account constraint yet, so rung 3 is empty for most traders and the chain falls through to your check-in and your defaults.
Example#
Your default Max daily loss is 2% with an Account size of €50,000, so €1,000. This morning's check-in says Max loss limit €600.
- On your personal account, the check-in wins: €600.
- On a prop account whose firm sets a €1,250 daily loss, the firm wins: €1,250, even though your €600 is stricter.
Per-trade risk works the same way, with one extra step in Risk Rule Adherence: the chain's cap is compared with your playbook's own cap, and the stricter of the two applies.
Where it affects your numbers#
- Exposure Discipline uses the chain for max daily loss and max trades per day.
- Risk Rule Adherence uses the chain for max risk per trade, then takes the stricter of it and the playbook's cap.
- The Oversized and Overtrading detectors read only your defaults from Settings, not the full chain.
- Settings, NEX shows a Firm limits strip when a firm's numbers outrank yours.
Frequently asked questions#
Which daily loss limit does Limbix use for a prop account?#
The firm's, if it's recorded in Prop Hub. A fixed amount is used first. Otherwise the firm's percentage is applied to the prop account's size. It applies when the trades being scored all come from that prop account. Your own Max daily loss still governs your other accounts.
Why isn't my stricter check-in limit being used?#
Because a prop firm's rule sits above it. The chain uses the first usable rung, not the smallest number. On a non-prop account, today's check-in wins over your Settings default. If you want to hold yourself tighter than your firm, your stand-down line tracks that without changing the score.
What happens if I set a limit to zero?#
Zero isn't treated as a limit. It means "not set", so Limbix falls through to the next rung. With nothing below it, that part of the score shows "—". Leave the field empty, or enter the real number you trade to.
Does the chain change which trades get flagged Oversized?#
No. The Oversized detector compares a trade's risk with your own Max risk per trade from Settings, when the trade and your account share a currency. The chain feeds the Risk Score components. See Set your risk limits.