Prop-sim risk limits

Prop-sim turns your paper account into a prop challenge. Switch it on and Nocterm enforces two drawdown floors against your simulated equity: a static max drawdown from your starting balance and a daily drawdown from each UTC day’s opening equity. Break either one and the wallet latches closed - no new orders accepted - until you reset the account.

Where: Settings ▸ Paper Account ▸ Prop TradingLeverage: 1–100x

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Screenshot needed

id: trading-prop-sim-limits

The Prop Trading settings with max drawdown, daily drawdown, and the status card

suggested 1280x720

Overview

Both limits are evaluated continuously on your live equity (balance plus open-position PnL), so an unrealized loss counts the same as a realized one. The static limit is fixed to where you started; the daily limit re-baselines at the top of each UTC day, so a good day doesn’t loosen tomorrow’s floor and a bad day resets at midnight UTC.

When equity touches a floor the wallet is latched closed server-side - further orders are refused with a Prop Wallet Closed message. Closing is the only safe state for a breached account, so the lock holds until you reset, even across reloads. A configurable margin multiplier (leverage, 1–100x) sets how much size your balance supports.

A status card shows the current wallet status, both limits, and how much room you have left to each floor.

How to use

1. Open Settings ▸ Paper Account and turn on Prop Trading.

2. Set your Max drawdown % (from the starting balance) and Daily drawdown % (from the UTC day open).

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   Screenshot needed

   id: trading-prop-sim-limits-settings

   Setting max drawdown, daily drawdown, and the margin multiplier

   suggested 640x480

3. Optionally set the margin multiplier (1–100x) to match the leverage of the challenge you are rehearsing.

4. Trade as normal. Keep an eye on the status card - when room to a floor runs thin, manage risk down before equity hits it.

5. If the wallet latches closed, reset the paper account to reopen it.

The two limits

Limit	Measured from	Evaluated on	On breach
Max drawdown	Starting balance (fixed)	Live equity	Wallet latches closed
Daily drawdown	UTC day-open equity (re-baselines daily)	Live equity	Wallet latches closed

Caution

A breach is enforced on the server: once the wallet is Prop Wallet Closed, no further orders are accepted until you reset, and a reset wipes positions and history. Open-position losses count toward both floors, so a single oversized trade can latch the account. Size for the floor, not the entry.

Related

• Paper trading & account setup - the account these limits run on.
• Trader Analysis - track drawdown and streaks over time.
• Managing positions & orders - reduce risk before you hit a floor.