Stop drawdown Expert Advisor allows traders to escape a big drawdown (up to 50%). The robot locks from 1/3 to a full amount of locked positions trying to make profit and preventing a drawdown from growing quickly. Obtained profit allows traders to manually close some locked positions covered by profit till all orders are closed.
When the price moves in unfavorable direction for the distance specified in the parameters,
- the Expert Advisor opens a locking position with a lot equal to 1/3 of a total amount of locked positions' volume and a take profit at a distance indicated in the parameter. It also places a stop order to the take profit level and a limit order at 1/3 of the distance between the closest locked position and the locking position towards the locked one with a lot also equal to 1/3 of the locked position lot. Next:
- If the price touches the take profit and the stop order is triggered, the EA returns to point 1 opening a new stop order and shifting the limit order. Thus, the EA gains profit holding a drawdown. Obtained profit is then used to close locked positions.
- If the price touches the limit order, the EA deletes the stop order, while the take profit of the two locking positions is moved to breakeven and a new limit order is opened for the distance equal to one between two locking positions.
- If the take profit is triggered, the EA closes the limit order and returns to point 1.
- If the limit order is triggered, the EA waits for breakeven conditions at three locking positions. When reaching them, it closes locking positions and returns to point 1, thus decreasing the distance to locked positions.
- Distance - minimum distance from the locked position to the price, at which the EA starts working, in pips.
- Number Magic - magic number.
- TakeProfit - take profit level in pips.
- TradeComment - comment for the EA's orders.
Requirements and warnings
If the EA detects third-party locking orders, it closes them in breakeven before locking. The EA does not close locked positions. Instead, this is done by a trader.
The EA trades only if the lot sum of locked positions is more than three minimum broker lots.
Accepted Distance value is from 50 (500 for five-digit quotes).
Accepted TakeProfit value is from 20 (200 for five-digit quotes).
The robot works in both directions.
The EA closes all orders when reaching breakeven at all of them.
The operation algorithm can be examined when testing in visualization mode. In testing mode, the EA opens a test order with subsequent locking.