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Version: 3.0

Example F4: Permanent 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 enforces permanent suspension based on maximum overall drawdown. If drawdown ever exceeds 2% from the highest account equity, trading halts permanently. This stringent protection ensures strategies never risk unacceptable losses regardless of eventual recovery.

Overall drawdown represents the worst-case scenario experienced since strategy inception. This metric reveals true risk exposure, showing the maximum loss traders must psychologically and financially withstand. Limiting this preserves both capital and confidence.

The permanent nature of this suspension reflects drawdown's serious implications. Strategies exceeding acceptable drawdown levels have proven themselves too risky, warranting complete reevaluation rather than simple continuation.

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
  • Overall drawdown: Relative upper limit = 2.00

Screenshots​

Example F4: Permanent disabling of trading due to bad drawdown.webp