Does Blue Guardian's Maximum Daily Loss include unrealized losses from open positions?

Yes, Blue Guardian's 3% daily loss limit includes both realized losses from closed trades and unrealized losses from open positions. Your floating P&L counts toward the daily limit in real-time. If your combined closed and open position losses reach 3%, you breach the rule even with positions still running.

What happens if I breach the Maximum Daily Loss?

Breaching Blue Guardian's 3% daily loss limit results in immediate account termination. This applies to both Challenge phase and Funded accounts with no warnings or grace periods. Your account will be closed and you cannot continue trading that account, though you may purchase a new challenge.

When does Blue Guardian's daily loss limit reset each day?

Blue Guardian's daily loss calculation resets at the start of each new trading day based on their server timezone. The reset occurs regardless of market hours or your local timezone. Your daily loss counter returns to zero and you have a fresh 3% allowance for the new trading day.

Is the daily loss calculated from starting balance or current equity?

Blue Guardian calculates the 3% daily loss from your starting account balance at the beginning of each trading day. If you start Monday with $100,000, your daily limit is $3,000 regardless of previous profits or losses. The calculation uses the account balance at daily reset, not your current floating equity during the day.

Does Blue Guardian's Maximum Daily Loss include unrealized losses from open positions?

Yes, Blue Guardian's 3% daily loss limit includes both realized losses from closed trades and unrealized losses from open positions. Your floating P&L counts toward the daily limit in real-time. If your combined closed and open position losses reach 3%, you breach the rule even with positions still running.

What happens if I breach the Maximum Daily Loss?

Breaching Blue Guardian's 3% daily loss limit results in immediate account termination. This applies to both Challenge phase and Funded accounts with no warnings or grace periods. Your account will be closed and you cannot continue trading that account, though you may purchase a new challenge.

When does Blue Guardian's daily loss limit reset each day?

Blue Guardian's daily loss calculation resets at the start of each new trading day based on their server timezone. The reset occurs regardless of market hours or your local timezone. Your daily loss counter returns to zero and you have a fresh 3% allowance for the new trading day.

Is the daily loss calculated from starting balance or current equity?

Blue Guardian calculates the 3% daily loss from your starting account balance at the beginning of each trading day. If you start Monday with $100,000, your daily limit is $3,000 regardless of previous profits or losses. The calculation uses the account balance at daily reset, not your current floating equity during the day.

Updated 2026-03-08

Blue Guardian Maximum Daily Loss Rule Explained

Blue Guardian

Quick Answer

Blue Guardian's Maximum Daily Loss rule limits traders to 3% account loss in a single trading day.

The 3% daily loss is calculated from your starting account balance each trading day. This includes both realized and unrealized losses from all open and closed positions. Breaching this limit results in immediate account termination during both Challenge and Funded phases.

Key Rule Details

Limit

Dollar Value ($100,000)

$3,000

Includes

Open + Closed P&L

Resets

Daily

Breach

Account terminated

Calculation Example

Account Size: $100,000 — Maximum Daily Loss: $3,000

Account Size	$100,000
Maximum Daily Loss Limit	$3,000
Scenario: Closed P&L	$-840
Scenario: Floating P&L	$-1,560
Total Exposure	$-2,400
Remaining Buffer	$600

Limit used:80%

Common Mistakes

Ignoring Floating Losses

Traders focus only on closed trades while holding large unrealized losses. If you have $2,000 floating loss on a $100,000 account and take another $1,200 realized loss, you breach the $3,000 daily limit. The rule counts all losses, not just completed trades.

Weekend Gap Violations

Holding positions over weekends with tight margins near the daily limit. A $50,000 account allowing $1,500 daily loss can be breached instantly if positions gap down $1,600 at Monday open. Weekend market events can trigger immediate rule violations before you can react.

Compounding Small Losses

Taking multiple small losses without tracking the cumulative total. On a $25,000 account, six separate $130 losses throughout the day totals $780, approaching the $750 daily limit. Traders often lose track of their running daily total across multiple positions.

Misunderstanding Reset Timing

Assuming daily loss resets at market open instead of midnight server time. Trading late evening near your daily limit can lead to violations if losses carry into the new trading day. The daily loss calculation resets based on Blue Guardian's server timezone, not your local market hours.

Protection Strategies

Set Personal Daily Limit at 2%

Create your own daily loss limit at 2% instead of Blue Guardian's 3% maximum. This gives you a $1,000 buffer on a $100,000 account or $500 buffer on a $50,000 account. Stop trading when you hit your personal limit to avoid emotional decisions that could breach the firm's rule.

Risk Maximum 0.5% Per Trade

Limit individual trade risk to 0.5% of account balance, allowing six full losses before reaching the 3% daily limit. On a $100,000 account, this means $500 maximum risk per position. This position sizing prevents any single trade from consuming more than one-sixth of your daily allowance.

Enable Real-Time Loss Alerts at 2%

Set up platform alerts when daily losses reach 2% of your account balance. Configure alerts to trigger on both realized and unrealized P&L to account for floating losses. This early warning system gives you time to close positions or stop trading before breaching Blue Guardian's 3% limit.

Avoid Trading Before Major News

Stop opening new positions 30 minutes before high-impact economic releases that could cause sudden market moves. Major news events can create volatile price action that quickly transforms small positions into large losses. Focus on controlled trading environments where the 3% daily limit is manageable through normal risk management.

Related Rules

Maximum Total Loss

→

Profit Target (Phase 1)

10%

→

Payout Split & Schedule

Blue Guardian Comparisons

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on Blue Guardian's official website before purchasing a challenge. Updated 2026-03-08.