Maximum loss

The Maximum Loss – Prevent open module, will prevent opening new trades when an amount of loss has been reached within a window of time (timeframe), including the profit/loss of the currently opened orders.

Settings

• Maximum loss: the maximum amount of loss in pips, money or percentage of your equity.
• Unit: Select pips, money or percentage of your equity.
• Timeframe: Select the timeframe in which the loss has been reached. For example if you select D1, then all losses in the current day will add up to your total amount of loss.
  • Current = loss within timeframe of the chart.
  • M1 = loss within 1 minute.
  • M5 = loss within 5 minutes.
  • M15 = loss within 15 minutes.
  • M30 = loss within 30 minutes.
  • H1 = loss within 1 hour.
  • H4 = loss within 4 hours.
  • D1 = loss within 1 day.
  • W1 = loss within 1 week.
  • MN1 = loss within 1 month.

Afterthought from the team

We could’ve built a module which closes all current orders when the maximum loss has been reached, but we decided not to and instead only prevent opening new orders. Why? We believe when an EA opens an order it should allow for the order to run its normal course, instead of potentially being cut off premature. We believe that maximum loss shouldn’t be an afterthought, but should be a well thought out part of the EA. Therefore we recommend the following approach: when you want a maximum of 5% of loss a day without passing that percentage, then please make sure that the sum of your maximum loss (of this module) and your Stop Loss percentage (from the Stop Loss module) will never pass 5%. So if your Stop Loss module has a SL of 1% of equity, then you would be wise to set this module to 3.5 % of equity.