PrizmaL - Prop Firm Risk Protection / User Guide and FAQ

Overview

Prop Firm Risk Protection is an integrated risk management system designed to automatically enforce daily loss and maximum drawdown limits. It continuously monitors the account Equity in real time and takes immediate action if a configured limit is reached.

This system helps protect the account and ensures compliance with strict risk rules commonly used by proprietary trading firms. All calculations are based on Equity, not Balance. This means floating profit and loss from open trades is included. The system works fully automatically and does not require manual intervention.

How the Protection Works

The system monitors two independent limits:

1. Daily Loss Limit

2. Total Drawdown Limit

If either limit is reached:

All open positions are immediately closed.

All pending orders are removed.

Trading is paused until the next day.

Trading resumes automatically after the daily reset.

No restart is required.

Daily Loss Limit % (0 = Off)

Defines the maximum allowed loss during a single day.

Value is expressed as a percentage.

Example:

5.0 = maximum allowed daily loss is 5%

0.0 = disabled

The daily limit is calculated using one of two modes:

Strict Mode

Loss limit is based on the Initial Balance.

Relative Mode

Loss limit is based on the balance at the start of the current day.

This behavior is controlled by the Strict Mode setting.

The daily limit resets automatically at the start of each new day.

Total Drawdown Limit % (0 = Off)

Defines the maximum allowed drawdown from the Initial Balance.

Example:

10.0 = maximum allowed total loss is 10%

0.0 = disabled

This limit protects the entire account and does not reset daily.

If Equity falls below the allowed level, protection is triggered immediately.

Initial Balance (0 = Auto)

Defines the Initial Balance used for drawdown calculations.

If set to 0.0

The system automatically uses the account balance at first launch.

If set to a fixed value

The system always uses that value for risk calculations.

Example:

If account size is 10000, set Initial Balance to 10000.

This is recommended for prop firm accounts.

Strict Mode: Initial Balance / Daily Balance

Controls how the Daily Loss Limit is calculated.

Strict Mode = true

Daily loss limit is calculated from the Initial Balance.

This matches strict prop firm risk models.

Relative Mode = false

Daily loss limit is calculated from the balance at the start of the current day.

This allows the loss limit to grow as the account grows.

Strict Mode is recommended for prop firm compliance.

Relative Mode is more flexible and suitable for personal accounts.

Daily Reset Time Offset (UTC)

Defines when a new trading day begins.

Example:

1 = CET (winter)

2 = CEST (summer)

This affects when the Daily Loss Limit resets.

Set according to your prop firm's timezone.

Close All Trades on Limit

Defines which trades are closed when a limit is reached.

true

All trades on the account are closed, including:

Manual trades

Trades from other Expert Advisors

Trades on other symbols

false

Only trades opened by this EA are closed.

For prop firm compliance, true is recommended.

Show Protection Status Logs

Controls whether protection messages are shown in the terminal Journal.

true

Displays status messages such as:

New day baseline

Drawdown usage

Protection activation

false

Protection still works, but no messages are shown.

Important Notes

Protection is based on Equity, not Balance.

This means floating losses are included.

Protection works in real time.

Protection continues working after terminal restart or VPS reboot.

Protection does not interfere with trading unless limits are reached.

Example Configuration for Prop Firm Account

Daily Loss Limit % (0 = Off) = 5.0

Total Drawdown Limit % (0 = Off) = 10.0

Initial Balance (0 = Auto) = 10000

Strict Mode: Initial Balance / Daily Balance = true

Daily Reset Time Offset (UTC) = 1

Close All Trades on Limit = true

Show Protection Status Logs = true

Example Configuration for Personal Trading

Daily Loss Limit % (0 = Off) = 5.0

Total Drawdown Limit % (0 = Off) = 20.0

Initial Balance (0 = Auto) = 0.0

Strict Mode: Initial Balance / Daily Balance = false

Daily Reset Time Offset (UTC) = 1

Close All Trades on Limit = true

Show Protection Status Logs = true

Frequently Asked Questions (FAQ)

Q: Why were my trades closed even though my account balance is high?

Because the loss limit was reached based on Equity. Protection uses Equity, not Balance.

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Q: What is the difference between Strict Mode and Relative Mode?

Strict Mode uses the Initial Balance to calculate daily loss limits.

Relative Mode uses the balance at the start of the current day.

Strict Mode provides fixed protection.

Relative Mode provides adaptive protection.

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Q: Which mode should I use for prop firm accounts?

Strict Mode is recommended for prop firm accounts.

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Q: Will trading resume automatically?

Yes. Trading resumes automatically after the daily reset.

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Q: Does protection work after terminal restart?

Yes. Protection state is saved and restored automatically.

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Q: Can I disable protection completely?

Yes. Set both limits to 0.0

Daily Loss Limit % (0 = Off) = 0.0

Total Drawdown Limit % (0 = Off) = 0.0

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Q: Will it close trades opened manually or by other EAs?

If Close All Trades on Limit = true, yes.

If set to false, only this EA's trades are closed.

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Q: Why do I see negative drawdown percentage in logs?

Negative values indicate profit, not loss.

This is normal.

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Q: Does protection slow down trading?

No. Protection runs efficiently and does not affect performance.

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Q: Is this system safe to use with prop firm accounts?

Yes. It is designed specifically to enforce strict risk limits automatically.

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End of Guide