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Yes, I don't think anyone would survive that kind of losers for period of time. On odd bad day might happen but if this happens 3-4 times I would assume there is need for taking a break.
I generally go by number of trades though. And I calculate SL based on ATR, generally it is 10 to 14% of ATR depending on volatility expected for the day. If at any given time, I get two SL down I leave terminal alone. Note that I take 2-3 trades only and mostly focus on scoring just RR of 1:2, 1:3 or a very rare day of 1:4.
No body can answer for your question correct. Because correct way will be look trading statistic for 1-2 years and only after you can understand how much day you lose or win. Which average win/loss day and etc. Only after that you can chose correct rules for your Risk management. If you only start in trading. Chose 1:1 or 1:1,5 ratio.
If your strategy needs a max daily loss then develop a new strategy.
My max loss over the past year was most certainly larger than my average winner (by over $300).
My largest loss over the past year was $745 per contract. My average loss was $260. Now if I decided I didn't want to risk $745 again and implemented a max loss of say $400 ($140 over my average loss, $35 less than my average winner) my other stats would significantly change as well. R/R ,winning %, max win (potentially), average win, average loss, etc. and therefore expectancy would change and no doubt for the worse.
I don't use arbitrary ratios for stop/profit targets.
I only trade 1-4 trades a day though with bigger stops between 10-20 ticks per trade. Therefore, if I took 2 trades in which I risked 15 ticks each and both happened to be losers....I will be left with another 2 shots which might not be worth the potential risk of increasing my red day of $300 since $300 is generally my daily goal.
