Proposal for Enhancing Daily Loss Limit Feature with Trailing Stop Functionality

Dear Topstep Team,

I hope this message finds you well. I am writing to propose an enhancement to the Daily Loss Limit feature currently offered on your platform. As a dedicated trader using Topstep, I believe that incorporating a Trailing Stop feature into the Daily Loss Limit would greatly benefit users by preserving profits while maintaining disciplined risk management.

Current Feature Overview:

The Daily Loss Limit feature allows traders to set a maximum amount of money they are willing to lose in a single trading day. Once this limit is hit, the account is automatically locked to prevent further losses. This is a valuable tool for managing risk and preventing excessive drawdowns.

Proposed Enhancement: Trailing Stop with Daily Loss Limit

Concept:

Introduce a Trailing Stop functionality that adjusts the Daily Loss Limit dynamically based on the trader’s cumulative profits throughout the trading day. Specifically, once a trader moves into positive territory for the day, the Daily Loss Limit would automatically adjust to preserve a portion of those profits.

Example Implementation:

1. Initial Setup:

- Trader sets a Daily Loss Limit at -$500.

- Trader begins trading and incurs losses, but eventually turns the day around and moves into a profit of +$2500.

2. Adjustment of Loss Limit:

- As the trader's profit reaches +$2500, the Daily Loss Limit is adjusted upward to +$2000 (i.e., the initial limit of -$500 plus the day's profit of +$2500, minus a new buffer of $500).

3. Result:

- If the trader then experiences a loss of $500, the account locks with a net profit of $2000. This allows the trader to secure a portion of their gains while still providing a safeguard against unexpected market movements.

Benefits:

1. Enhanced Profit Preservation:

- Traders can lock in profits without being penalized by subsequent losses, promoting a more balanced and secure trading approach.

2. Motivated Performance:

- The prospect of safeguarding profits encourages traders to stay disciplined and potentially achieve better results, as they are rewarded with a risk-adjusted buffer against losses.

3. Improved Risk Management:

- The trailing stop feature aids in managing risk more effectively by aligning the loss limit with daily performance, ensuring that traders remain in control of their profitability.

4. Competitive Edge:

- This feature would differentiate Topstep from other trading platforms by offering a sophisticated tool that enhances both risk management and profit preservation.

Incorporating this enhancement would not only align with Topstep’s commitment to supporting traders but also add significant value to your platform's suite of risk management tools. I am confident that this feature would be well-received by the trading community and look forward to discussing this proposal further.

Thank you for considering this suggestion. I am eager to hear your thoughts and am available for any additional information or discussion on how we can make this enhancement a reality.

Best regards,

Reshaun Smith