What is the global maximum loss protection feature?

The Global Maximum Loss Protection is a critical safety mechanism in MagicTradeBot’s Intelligent Decision-Making Engine that prioritizes account protection over all other rules. It ensures that your trades are automatically closed if losses reach a predefined threshold.

🧠 How It Works

  1. Highest Priority Rule

    • Among all decision-making rules, Global Maximum Loss Protection has the highest priority
    • Once triggered, it overrides other rules, including Smart TP, dynamic stop-loss, and DCA

  2. Automatic Closure

    • When a trade or the account reaches the maximum loss threshold, the engine closes the trade immediately
    • Closure is done 100% for the affected positions, ensuring no further exposure

  3. Configuration

    • Typically defined in your settings (e.g., decision_engine.yaml or risk_limits.yaml)
    • Example:
MaxLossReached: 200   # Close trades immediately if total loss reaches 200 USDT

  • Can be applied globally across all open trades, protecting your account from catastrophic losses

  • Integration with Other Rules

    • Works seamlessly with other stop-loss, take-profit, and DCA strategies
    • Ensures that even complex strategies cannot exceed your defined risk limit

🔑 Key Points

  • Purpose: Protect your account from extreme or unexpected losses
  • Execution: Immediate closure of trades when loss threshold is met
  • Priority: Overrides all other decision-making rules
  • Best Practice: Always set a reasonable maximum loss to safeguard capital

In short, Global Maximum Loss Protection acts as a safety net that automatically stops trading and closes positions when losses exceed your defined threshold, giving you peace of mind during high-risk or volatile market conditions.

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