Floating Point Stop-Loss
The second protection method to safeguard you from over-loss
There is a major drawback when trading with a close-price stop-loss: You may incur unpredictable losses if the price breaks through your stop-loss. The market can fluctuate rapidly during certain periods, potentially causing large losses if you wait for the bar to close—especially during news breakouts or the release of critical economic data. To address this, we offer a second stop-loss protection mechanism that safeguards you when prices move rapidly against your position.
Force Liquidation Fold
The parameter force-liquidation-fold is used to calculate when a trade should be automatically closed based on floating losses with the following equation:
Float point stop-loss
The floating point stop-loss feature continuously monitors your floating losses in real time (checking every second). For example, if you're willing to risk $10 per trade and set the boundary at 2.5 times your maximum allowable loss per trade, the system will automatically close the trade when your floating loss reaches $25 (10 * 2.5), regardless of the close-price stop-loss you've set. This feature protects you from excessive losses during periods of high market volatility.
A Reminder for Traders Who Prefer Setting Their Own Lot Size: The floating point stop-loss may trigger earlier than the close-price stop-loss, especially when you're trading with a larger lot size of your own choosing. This happens because the floating point stop-loss only considers whether it reaches 2.5 times your risk amount. You may need to adjust this if you prefer trading with a custom lot size. Just a reminder, it's always better to use both the close-price stop-loss and the floating point stop-loss to protect your trades.