Equity Protection (Risk Management) EA

Equity Protection (Risk Management) EA

Function of the EA :

• ·       The purpose of this EA is only to protect the equity of the account.
• ·       It must be able to function on an account with multiple EAs & instruments running simultaneously.
• ·       The EA will control the account not to enter and exit market orders during the high impacted expected events.
• ·       The EA have the options to hold or close all market orders outside the trading hours which is the weekend, the daily market roll over period is ok.

How this is achieved:

• ·       Able to send alert based on specified limits(% of  balance or a $ value). The limits are a series of specified limits, such as 5%, 10%, 15%, 20%. The Alert should also sent when actions were performed by the EA (stop other EAs and shut EAs see below). The method of delivery of the alert can be a message box on the MT4 with a noticeable sound and email/mobile phone delivery.

• ·       The EA should prevent other trading EAs from opening trades when specified limits are reached.
• ·       Trading EAs should be allowed to continue running when “safe” to do so i.e the input limits are no longer applicable. (See parameters below)
• ·       The EA should close all orders and shout down all EAs when higher specified limits are reached.
• ·       The specified limits should be the daily maximum loss limit on the whole account, meaning including the profit or loss already made from closed orders on that day.
• ·       The EA will control the account not to open and close market orders on the affected instrument in the period of x minutes before to x minutes after the high impacted expected events. The high impacted expected events are based on the forexfacory.com news.
• ·       The EA have the options to hold or close all market orders outside the trading hours which is the weekend.

Example scenario:

There are few EAs running on the account. This equity protection EA is monitoring the balance and DD on the account. When DD reach 2%, send the alert. When DD reach 4%, send the alert……

When DD reached $2000, this equity protection EA should stop all the EAs open new trades and no changes to the existing open orders.

When DD below $2000, this equity protection EA should remove the stop and let the EA to resume trading.

When DD reached $4000, this equity protection EA should close all the exiting orders and pending orders and remove all EAs on the account to protect original capital/balance.