Understanding YRM Prop’s Daily Risk Management Limits
YRM Prop implements a flexible approach to daily risk management to provide traders with sufficient freedom while still promoting responsible trading practices. Here’s the accurate information about our daily risk parameters:
Daily Loss Guidelines
Each account tier has recommended daily loss parameters:
| Account Size | Daily Loss Guideline | Percentage of Account |
|---|---|---|
| $50K | $1,000 | 2% |
| $100K | $2,000 | 2% |
| $150K | $3,000 | 2% |
Important Clarification: These daily loss percentages are advisory guidelines only, not strictly enforced limits. They are designed to help traders manage risk appropriately.
Soft Breach System
- No Automatic Liquidation: Exceeding the daily loss guideline will NOT result in account liquidation or suspension
- Notification Purpose: The system tracks these soft breaches to provide you with risk management feedback
- Trader Discretion: You maintain full control of your trading decisions throughout the trading day
What Actually Matters
The only hard limit that will result in account failure is the Maximum Drawdown Limit:
| Account Size | Maximum Drawdown Limit |
|---|---|
| $50K | $2,000 |
| $100K | $3,000 |
| $150K | $4,500 |
This maximum drawdown is calculated on an end-of-day basis, giving you flexibility for intraday drawdowns as long as you recover before market close.
Strategic Benefits
This approach provides several advantages:
- Trading Freedom: Execute your strategy without fear of arbitrary intraday cutoffs
- Recovery Opportunity: Ability to work through temporary drawdowns within the same session
- Focus on End Results: Emphasis on where your account stands at the end of the day, not during volatile intraday swings
- Learning Tool: Use the soft breach notifications as a personal risk management guide
YRM Prop’s approach to daily risk management is designed to be trader-friendly while still promoting responsible capital preservation. The daily guidelines serve as helpful benchmarks rather than restrictive limitations on your trading activity.