A Re-Arming Watchdog for Stop Losses and Account Drawdowns
Summary
This document describes a defensive trading monitor that supervises open positions without initiating trades. Its controls can be enabled separately: it can detect positions without stop losses and set a stop using chart-timeframe ATR, enforce a daily loss threshold referenced to the balance at the start of the trading day, and limit total drawdown from an equity peak. The stop placement applies only to the chart symbol and respects minimum point and broker stop distances.
The total drawdown guard includes a cooldown: after the configured period, it resets its equity reference to current equity and resumes monitoring. Symbol and magic-number filters can narrow the positions covered. Breaches can trigger position closure, alerts, or a chart status panel; closing is disabled by default. The document explains the design and configurable behavior, but provides no performance evidence. ATR stop sizing and threshold-based closure can behave differently across instruments and account conditions, so the tool is a risk-control mechanism rather than a demonstrated trading strategy.
Key ideas
- The monitor supervises existing positions and does not open trades.
- Missing stops can be set using an ATR multiple, subject to minimum distance rules.
- Daily loss is measured against the balance recorded at the start of the trading day.
- Total drawdown is measured from an equity peak and can re-arm after a cooldown.
- Symbol, magic-number, alert, panel, and closure settings control the guard's scope and response.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.