It works in a same was as the Maximum Daily Loss, but does so based on the last seven calendar days, rather than just a single trading day. Example #1 If a trader has had a maximum portfolio value of $30,000 and he has not traded over the past 7 calendar days (i.e., the portfolio is still at $30,000), then the loss amount the trader should avoid is $600 (2% of the portfolio value). You can find full explanation with more examples in our blog