DRAWDOWN LIMITER ADVANCED – USER GUIDE – Different – 13 August 2023

Should you we’re looking for essentially the most highly effective Drawdown Limiter to forestall you from breaking the rule of Max Every day Drawdown imposed by the assorted Prop Agency Firms, you’re precisely in the precise place.

On this article we’re going to seee the right way to correctly set it up primarily based on the Prop Agency you’ll select and their respective guidelines.

Particularly we are going to see:

• Prop Agency Settings
• Essential Ideas
• Manually Reset Your Drawdown
• Mechanically Cease Your EAs

Let’s not waste time and transfer to the necessary issues!

Each Prop Agency has related however completely different guidelines it’s a must to respect with a purpose to get funded and, as soon as funded, to not lose your account.

So, this can be very necessary that you simply set the parameters of the Drawdown Limiter in the precise means for the Prop Agency you choosed.

Let’s take two exhaustive examples:

1) FTMO

Should you choosed to pas s the analysis part with FTMO you’ll have to respect a 5% Max Every day Drawdown primarily based on the Preliminary Steadiness of the account you chose, so when including your Drawdown Limiter to a chart, you’ll have to set the “Every day Drawdown primarily based on” parameter with “Intial Deposit (Mounted Quantity of Cash)” like within the gif beneath.

The Total Max Drawdown Restrict shall be 10% of Loss from Preliminary Steadiness, so if we supposed you’re buying and selling on a 100.000$ account, your fairness ought to by no means go beneath 90.000$.

With the Drawdown Limiter you possibly can monitor your total drawdown, you simply should set the Preliminary Deposit of your account, the precise typology of Max Total Drawdown and the proportion of drawdown you do not need to overcome.

2) MyForexFunds

Should you choosed to go the analysis part with MyForexFunds the principles are fairly completely different.

You’ll have to respect a 5% Max Every day Drawdown primarily based on the Highest between the “Begin of Day Steadiness” and “Begin of Day Fairness”, so when including your Drawdown Limiter to a chart, you’ll have to set the “Every day Drawdown primarily based on” parameter with “Steadiness or Fairness (Larger)” like within the gif beneath.

The Total Max Drawdown Restrict shall be 12% of Loss from Preliminary Steadiness, so if we supposed you’re buying and selling on a 100.000$ account, your fairness ought to by no means go beneath 88.000$.

With the Drawdown Limiter you possibly can monitor your total drawdown, you simply should set the Preliminary Deposit of your account, the precise typology of Max Total Drawdown and the proportion of drawdown you do not need to overcome.

The DrawDown Limiter cannot bear in mind eventual slippage which will happen from the second the Knowledgeable Advisor discover your fairness reached the utmost each day loss to the second your positions are literally closed, the time between this two phases may fluctuate relying in your connection velocity, the connection velocity of the server, the out there liquidity, the market situations and extra.

So, it’s extraordinarily really helpful that you simply set a Max Every day Drawdown p.c a bit decrease than the really allowed out of your Prop Agency, simply to ensure that you do not exceed that due to slippage or different components that don’t depend upon you or on the Drawdown Limiter.

For instance, for those who Max Every day Drawdown is 5%, you might set a 4.9% of Most Loss at which the Drawdown Limiter will routinely shut all of your positions and delete all of the pending orders. Should you commerce with excessive quantity sizes, bear in mind that you might have to decrease extra this proportion, as a result of at each tick of the market your fairness change in a major means, so the chance derived from slippage is greater.

MANUALLY RESET THE DAILY DRAWDOWN

If it’s good to reset your Drawdown, you are able to do it manually. 

Beneath are defined two completely different conditions and the right way to act in them:

1) Max Every day Drawdown has been reached

In case you reached the utmost Every day Drawdown and it’s good to reset it ( like in case your testing the EA or for no matter motive ) you’ll have to proceed on this order: 

• Take away the Drawdown Limiter from the chart
• Delete the worldwide variable “GV_DRAWDOWN” (Go to Instruments > World Variables, choose  “GV_DRAWDOWN” and click on the ‘Delete’ button)
• Add the Drawdown Limiter to the chart once more

2) Max Every day Drawdown has NOT been reached 

On this case, the method is even easier, you are able to do it by simply eradicating e including once more the Drawdown Limiter to the chart.

AUTOMATICALLY STOP YOUR EAs

In case you are an Knowledgeable Advisor Developer and also you need to routinely cease your EAs as soon as the utmost each day drawdown is reached, add this piece of code proper on the beginning on OnInit() functon, this can forestall your EAs to open new positions that may be routinely closed, avoiding the commissions price.

if(GlobalVariableCheck("GV_DRAWDOWN")){
      return;
}