One of the greatest challenges for a trader is maintaining their strategy after a series of losing trades. With this in mind, we developed the Risk Management tool, which allows the trader to create a plan by configuring parameters that, when reached, block the submission of new orders in the selected account.
The account will remain blocked until the start of the next day or until the management parameters are adjusted to margins that allow new trades. If the user has open trades when the parameters are reached, they will still be able to close those positions.
To open the Risk Manager, go to the Trade menu:
Parameters
Defined for the selected account in the Account field, below is the description of each parameter:
- Total Loss: Prevents the submission of new trades when the total account result exceeds the configured loss limit.
- Total Gain: Prevents the submission of new trades when the total account result exceeds the configured gain limit.
- Drawdown: Prevents the submission of new trades when the drop in value relative to its maximum profit exceeds the configured amount.
- Number of consecutive losses for assets: Prevents the submission of new trades when there are consecutive losses greater than the configured amount, summing losses across all individually traded assets.
- Number of closed trades: Prevents the submission of new trades when the number of closed trades exceeds the configured amount.
- From a specific time: Prevents the submission of new trades after the configured time.
Editing Risk Management
The tool also allows the blocking of Risk Management editing. This function is used to prevent editing of parameters once they have been reached, thus maintaining the original plan.
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Block for a number of hours, with the lock lasting until the end of the day:
When selecting the first option for blocking editing, the number of hours entered in the indicated field will be the time during which the Risk Management editing will remain blocked. -
Block until the end of the day:
With this option, it will not be possible to edit the Risk Management parameters until the end of the day.
When selecting the first option and entering 1 hour for the editing lock, for example, once that 1 hour has passed, the only thing that will be unlocked is the ability to edit the Risk Management. The account will remain locked, as the user has reached the programmed parameters. To unlock the account, the user can either deactivate the management parameters or increase the values of the parameters that have been reached.
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Notify when approaching the lock:
When this option is enabled, a pop-up is displayed when the account's financial result reaches 85% of the set value, or 1 trade before when the items involve operational quantities, or 5 minutes before when there is a time configuration. -
Always show gain and loss limits on the chart:
If this option is disabled and the gain or loss limit is reached, the limit will no longer be displayed on the chart. -
Market below the average price:
Prevents an increase in exposure when the trade result for the asset is negative.
Points of Attention
- The lock occurs even if the user has not locked the editing. Therefore, it is possible to manually unlock the account by adjusting the parameters.
- Currently, the Risk Management tool is not available in the Mobile version, and therefore, its settings made via the Desktop platform are not synchronized with BlackArrow Mobile.
- The Risk Management tool does not close positions, even if you are making a profit exceeding the configured maximum limit or if you have a loss greater than the configured limit. The Risk Management tool only manages the opening of new orders when the configured blocks are reached. Closing these trades must be done manually.
- If you suspect the tool is not working as expected, immediately stop using it and report it to us via email at suporte@blackarrowtrading.com or through Chat.
- The user is responsible for the information/commands entered by themselves.
Nelogica products and systems do not have any feature that generates requests without prior manual user input via the platform.
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