Equity Protection Rules
The essential safeguards that protect account equity from extreme drawdowns, volatility shocks and unexpected market conditions.
The essential safeguards that protect account equity from extreme drawdowns, volatility shocks and unexpected market conditions.
Equity protection rules are hard‑coded safety mechanisms that override all strategy logic when account equity reaches predefined danger levels. These rules ensure that no EA can continue trading when capital is at risk of catastrophic loss.
Even the best trading systems can fail during extreme market conditions. Equity protection rules ensure survival by preventing uncontrolled losses during black‑swan events, news spikes or liquidity collapses.
A strict minimum equity level. If the account drops below this threshold, all trading stops immediately.
Limits how much equity can be lost in a single day. Once reached, the EA shuts down until the next session.
Prevents open positions from accumulating excessive unrealized losses during volatile conditions.
A global kill‑switch triggered by extreme volatility, execution failure or rapid equity collapse.
Quantisca’s risk engine integrates equity protection at the core level, ensuring that safety rules override all strategy logic when necessary.
Equity protection rules are the backbone of a professional risk engine. They ensure that no matter how extreme the market becomes, capital remains protected and the system survives to trade another day.
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