I emailed my broker to find out if I can do this and this is their reply.
We have a Max Daily Loss feature, which you can request via e-mail or via the live chat (Mon-Fri 9:00 am - 5:00 am EST). When your Day Realized or Day Unrealized hits the max loss amount, all of your positions will be sold and your account will be placed into Liquidate-Only mode. You would not be able to enter any new positions for the remainder of the day.
It seems they give you a choice of setting your Daily Max Loss at either day realized or day unrealized or both (I am not sure) Isn't it a terrible idea to set it at day unrealized? What if it was afterhours and a $5 stock only had like $1 on the bid side. So does the broker sells my position at $1 because my day unrealize on the stock is 80% down and triggers my DML? That makes no sense.
