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 close manually or automatically using Auto 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.
- Magic - magic number.
- TakeProfit - take profit level in pips.
- Auto close - use automatic closure of orders, if their loss is covered by the profit of closed orders.
- Set the date - if false, profit of the closed orders is accounted from the moment of the EA start. If true, it is accounted from starting from the time specified in the Date profit parameter.
- Date profit - time to start accounting the profit of the closed orders.
- A number of attempts to open/close a position - enter the number of attempts here.
- Slippage - maximum allowable price slippage when opening and closing orders.
- TradeComment - a comment for the EA's orders.
- Enable Gui – Show information on chart
Requirements and warnings
If the EA detects third-party locking orders, it closes them in breakeven before locking.
The EA trades only if the lot sum of locked positions is more than three minimum broker lots.
The robot works in both directions.
The EA closes all orders when reaching breakeven at all of them.
In order to implement the strategy, there must be three orders in each direction, therefore the Auto close function will reduce the lot down to three minimum lots of a broker in one direction.
It is not a multi-currency Expert Advisor and it only works on one instrument.
Before launching the EA, remove any other Expert Advisors form that instrument and stop trading manually. There must not be any other orders on the same instrument, when the EA is launched, otherwise the EA may have calculation and order placing errors.
The EA's Number Magic must not be equal to any magic number used in orders that were opened before the EA launch.
Before launching the Expert Advisor on a real account, it is recommended to study the operation algorithm in the strategy tester in the visual mode. In the testing mode, the EA opens a test order of 0.9 lots and then applies locking and coverage.