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Version: 3.0

Example F3: Temporary disabling of trading due to bad drawdown

caution

This is not a ready-to-use trading strategy. A trading strategy requires adjustment to the timeframe and symbol, along with thorough backtesting. The example is intended as a foundation for your own custom strategy and to help you get familiar with the Expert Advisor Builder web application. To import and use an example, please follow the instructions provided here.

Description​

This example uses weekly drawdown limits for temporary suspension. If drawdown exceeds 2% within a week, trading pauses until the next week. Unlike performance limits that measure end results, drawdown limits monitor peak-to-trough movements during the period.

Drawdown monitoring captures risk exposure more accurately than simple performance metrics. A strategy might end profitably while experiencing dangerous drawdowns that risk large losses. This measurement ensures strategies maintain acceptable risk levels throughout trading periods.

The inspector panel shows current drawdown levels, helping traders understand their risk exposure in real-time. This awareness promotes better risk management decisions even when trading manually alongside automated systems.

Recreate the Example​

You can either import this example directly or set it up manually. To manually replicate the trading module, make sure a newly added module includes the following key settings and that the professional mode is activated:

Trade Basics

  • Operation type = Long
  • One trade mode = Off

Signal Generation - Indicators - STD

  • Signal in use = On
  • Signal used for = Forward
  • Selected indicator = STD
  • Draw in chart = Off
  • Forward adjustment = 3.50

Signal Generation - Indicators - SMA

  • Signal in use = On
  • Signal used for = Entry
  • Selected indicator = SMA
  • Draw in chart = On
  • Drawing slot = 1

Signal Generation - Indicators - EMA

  • Signal in use = On
  • Signal used for = Entry
  • Selected indicator = EMA
  • Draw in chart = On
  • Drawing slot = 2

Signal Generation - Indicator Combinations (SMA & EMA)

  • Signal in use = On
  • Signal used for = Entry
  • Input indicator 1 = SMA
  • Input indicator 2 = EMA
  • Value relation = Value x cross value x

Initial Stop Loss

  • Selection = Indicator
  • Used indicator = STD

Initial Take Profit

  • Selection = Risk ratio
  • Risk ratio = 1.40

Volume Calculation

  • Volume calculation method = Fix lots
  • Fix lots = 0.10

Monitoring

  • Draw inspector panel = On
  • Weekly drawdown : Relative upper limit = 2.00

Screenshots​

Example F3: Temporary disabling of trading due to bad drawdown.webp