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Prop Drawdown Guard

Real-time distance-to-violation for funded rules

Traders using funded accounts repeatedly describe trailing drawdown and max daily loss rules as confusing and easy to violate accidentally. This recipe tracks remaining buffer and tightens risk as the buffer shrinks.

House RecipePersonal8 min setup

INGREDIENTS

🔔Notifications

PROMPT

Create "Prop Drawdown Guard". I will input my prop rules (max daily loss, trailing drawdown style). Alert me when I'm within 25% of any violation threshold, show remaining buffer, and step down risk (25%->0.5x risk, 15%->0.3x, 10%->stop). Platform-agnostic.

Pain point

Rule violations can end an account regardless of trade quality.

Triggers

  • Equity or intraday drawdown within bufferWarningPercent of rule limit
  • Daily loss within dailyLossWarningPercent of limit

Conditions

  • Needs rule configuration (max daily loss, trailing drawdown method)
  • Apply per-account if multiple accounts are traded

Actions

  • Alert with remaining buffer: "$ remaining" and "% remaining"
  • Reduce risk per trade as buffer shrinks (step-down schedule)
  • Trigger circuit breaker if buffer crosses hard stop

Parameters (defaults)

  • bufferWarningPercent: 25
  • dailyLossWarningPercent: 25
  • stepDownRiskSchedule:
  • {remainingPercent: 25, riskMultiplier: 0.5}
  • {remainingPercent: 15, riskMultiplier: 0.3}
  • {remainingPercent: 10, riskMultiplier: 0.0}

Examples

  • If only 15% drawdown buffer remains, cap risk at 30% of baseline.
  • If buffer hits 10%, stop trading for the day.
Tags:#trading#prop-firms#drawdown#risk-management