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 Trading ▸ Prop simLeverage: 1–100x

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

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 - 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 - and because the account is stored on your machine, it survives a restart. 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 Trading and turn on Prop sim.

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

   

   Setting max drawdown, daily drawdown, and the margin multiplier

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 latches the wallet: once it reads 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.