Trading rules

Trading rules are essential guidelines designed to help traders manage risk, maintain discipline, and optimize trading performance. By adhering to these rules, traders can create a structured approach to their trading activities, minimizing emotional decision-making and reducing the likelihood of significant losses.

Max Parallel Pending Orders

Description: Limits the number of pending orders (limit or stop orders that haven’t been executed yet) you can have active at the same time. Once the limit is reached, no new pending orders can be placed until one is canceled or executed.

Examples:

• Scenario 1: If the rule is set to 3, and you already have 3 pending orders, the trading guard will prevent you from placing any more until one of the existing orders is triggered or canceled.
• Scenario 2: You have a limit of 5 pending orders and currently have 4 active. You place one more, hitting the limit, but when one of the orders is executed, the trading guard allows you to place a new pending order.

👉 Benefits:

• Helps manage exposure to the market by limiting the number of potential trades that could be triggered unexpectedly.
• Encourages better planning and prioritization of orders, ensuring each pending order fits your overall trading strategy.
• Reduces the risk of overcommitting to multiple trades that could execute simultaneously, which may overwhelm your account balance or margin.

Max Trades Per Day

Description: Limits the number of trades you can execute within a single trading day. Once this limit is reached, no further trades can be opened.

Examples:

• Scenario 1: If the rule is set to 3, and you have already executed 3 trades today, the trading guard will prevent you from opening a 4th trade.
• Scenario 2: You set the limit to 10 trades per day. After using all 10 trades, the trading guard restricts you from making any more trades, even if you see more opportunities.

👉 Benefits:

• Prevents overtrading and emotional decisions, ensuring you stick to a pre-planned trading strategy.
• Helps you stay consistent and disciplined each trading day.
• Encourages better trade quality by making each trade count toward your daily limit.

Max Winning/Losing Trades Per Day

Description: Sets a limit on the number of winning/losing trades you can have in one day. Once this threshold is reached, the trading guard will prevent further trades to avoid compounding losses.

Examples:

• Scenario 1: After hitting your limit of 3 losing trades, the system stops you from opening more trades, preventing further losses on your account.
• Scenario 2: With 4 losing trades as the limit, the trading guard halts your trading once you've reached that threshold, ensuring you don’t chase losses.
• Scenario 3: After reaching your 6th winning trade of the day, the system stops further trading, locking in your gains for the day.

👉 Benefits:

• Prevents you from falling into a "revenge trading" mindset, where you might try to recover losses through impulsive trades.
• Provides a hard stop after a series of losses, protecting your capital and emotional well-being.
• Encourages daily evaluation of trading performance, helping to recognize when it's best to step away.
• Helps preserve profits by preventing overtrading and potential losses after a successful streak.
• Encourages measured and disciplined trading after reaching a daily success target.
• Reduces the risk of getting overconfident, which could lead to impulsive, poorly thought-out trades.

Max Open Positions

Description: Controls the number of trades you can have open at the same time. Once the maximum number of open positions is reached, no new positions can be opened until one is closed.

Examples:

• Scenario 1: If the rule is set to 3, and you already have 3 open positions, the trading guard will prevent you from opening a new trade until you close one.
• Scenario 2: You have 5 open positions but see a new opportunity. The guard will block additional trades until an existing position is closed.

👉 Benefits:

• Prevents over-leveraging, keeping your exposure to the market within manageable limits.
• Encourages focused and strategic trading by forcing you to carefully select your trades.
• Reduces the risk of spreading capital too thin across multiple positions.

Check Stop Loss / Take Profit

Description: Ensures that every trade has a Stop Loss (SL) and Take Profit (TP) level set.

Examples:

• Scenario 1: You enable check SL rule and attempt to open a trade without setting a Stop Loss. The trading guard will immediately close the trade.
• Scenario 2: You enable check SL and TP. You open a trade with a Take Profit but forget to set a Stop Loss. Trading guard will close the trade, because there is no Stop Loss set.

👉 Benefits:

• Encourages disciplined risk management by ensuring every trade has predefined exit points.
• Protects against large losses by ensuring that Stop Loss levels are always set.
• Helps lock in profits by ensuring that Take Profit levels are defined, making it easier to exit trades at target prices.
• Provides peace of mind, knowing your trades are protected even if market conditions move against you unexpectedly.

Max Risk Per Trade

Description: Restricts the maximum percentage of your account balance that can be risked on a single trade. This ensures that no single trade can cause excessive losses. In case you will not define the risk(stop loss) during opening the trade, it will immediately close the position.

Examples:

• Scenario 1: If you set the max risk per trade to 2%, the system prevents you from risking more than $200 on a $10,000 account balance.
• Scenario 2: The trading guard blocks you from opening a high-risk trade that would exceed your 1% risk limit.
• Scenario 3: You are opening a new trade without SL set. Trading Guard will immediately close the position.

👉 Benefits:

• Protects your capital by ensuring that no single trade has a disproportionate impact on your account balance.
• Encourages disciplined trade sizing, reducing the likelihood of emotional, high-risk trades.
• Keeps your losses under control, helping to maintain consistent risk management.