Trader's Guard
What you can commit through Trader's Guard
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Cs
7 min read
17/10/2022
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1. Pair(s) Selection

  • Pair(s) allowed to trade: Pair(s) a trader allows himself to trade.
  • The commitment takes effect after clicking [Confirm] this Commitment.

2. P/L Management

  • Risk per order: The ratio of currently unrealized loss (including swap fee) of an open order to current balance.
  • All open orders: The ratio of currently unrealized loss (including swap fee) of all open orders to current balance.
  • The commitment takes effect after clicking [Confirm] this Commitment.

For example:

July 1, 2021: The account balance is $1000. You placed 2 orders.

July 2, 2021:

  • Order 1: Unrealized loss is $50; Swap fee is $5. Risk per Order 1: 55/1000*100=5.5%
  • Order 2: Unrealized loss is $20; Swap fee is $0. Risk per Order 2: 20/1000*100=2%
  • The account loss is $70; Total Swap fee is $5. Risk per Account: 75/1000*100=7.5%

***Note: Risk is always calculated on the current balance of the account.

3. Equity management

Commit to the amount of equity, support as a take-profit or stop-loss tool

  • Minimum equity: Commit to the minimum equity allowed
  • Maximum equity: Commit to the maximum equity allowed

4. Trading session

  • Commit to fixed trading sessions.
  • A trader can choose Entry day, Exit day, Entry hour, Exit hour and also Timezone.
  • The commitment takes effect after clicking [Confirm].

5. Equity drawdown

Equity drawdown is defined as the decline from a high peak to a trough low of the equity in a trader's account in a certain time (daily equity drawdown, weekly equity drawdown, monthly equity drawdown)

When setting the equity drawdown is X%, it means that you want X to be the maximum equity drawdown.

  • Daily equity drawdown is the daily maximum allowable equity drawdown from 0:00 to 11:59 every day by Server time.
  • Weekly equity drawdown is the weekly maximum allowable equity drawdown from 0:00 on Monday to 11:59PM on Sunday by Server time.
  • Monthly equity drawdown is the monthly maximum allowable equity drawdown from 0:00 on the 1st day to 11:59PM on the last day of the month by Server time.
  • Total equity drawdown is the maximum allowable equity drawdown of the account.
  • The commitment takes effect after clicking [Confirm] this Commitment.

***Note:

  • Equity peak and trough will be updated if there is a change in the day, week, or month.
  • Equity peak and trough will be updated daily, weekly, monthly.
  • FXCE's server time is GMT + 2 (Winter - Spring) and GMT + 3 (Summer - Autumn).

For example: Commitment with Term: Daily equity drawdown

At 17:00 on 01/07/2021 Vietnam time (01:00 pm by Server time GMT+3). Your account placed some orders and the account's equity is now $1000.

You successfully created a new Trader's Guard with a term that is daily equity drawdown of 10%.

  • This commitment will be effective immediately until 03:59 am on 01/07/2021 Vietnam time (11:59 pm on 01/07/2021 by Server GMT+3) and will be updated on the next days.
  • The equity peak after the time of successful creation: $1000.
  • At 20:00, the equity dropped the most to $990. The EDD now is (1000-990)/1000*100= 1%
  • At 22:00, the equity rose to a new peak of $1100. The new equity peak is $1100.
  • At 02:00, the equity dropped the most to $990. The EDD now is (1100-990)/1100*100=10%. Hit the committed daily maximum equity drawdown. The penalty is activated.

6. Floating drawdown

Float drawdown which is also known as floating losses happens when the account equity becomes negative.

Floating Drawdown calculation as follows:

Step 1: Call the Current floating value a= min(balance, assets).

Step 2: Compare the previous highest floating value with a: the higher value is the Max floating value, call it b with b=max(a, previous max floating).

Step 3: Then we calculate the drop rate from b to a. This is the Current floating drawdown.

When setting the floating drawdown on each timeframe is X%, it means that you want X to be the maximum floating drawdown in that time the account will reach.

  • Daily floating drawdown is the daily maximum allowable floating drawdown from 0:00 to 11:59 PM every day by Server time.
  • Weekly floating drawdown is the weekly maximum allowable floating drawdown from 0:00 on Monday to 11:59 PM on Sunday by Server time.
  • Monthly floating drawdown is the monthly maximum allowable floating drawdown from 0:00 on the 1st day to 11:59 PM on the last day of the month by Server time.
  • Total equity drawdown is the maximum allowable floating drawdown of the account.
  • The commitment takes effect after clicking [Confirm] this Commitment.

Note: a=min(balance, equity); b=max(a, previous max floating).

  • b and a will be updated if there is a change in the day, week, or month.
  • b and a will be updated daily, weekly, monthly.
  • FXCE's server time is GMT+ 2 (Winter - Spring) and GMT+ 3 (Summer - Autumn).

For example: Commitment with Term: Daily floating drawdown

At 17:00 on 20/04/2021 Vietnam time (01:00 pm by Server time GMT+3). Your account placed some orders and the account's balance and equity are now $1000.

You successfully created a new Trader's Guard with a term that is daily floating drawdown of 10%.

  • This commitment will be effective immediately until 03:59 am on 21/04/2021 Vietnam time (11:59 pm on 20/04/2021 by Server GMT+3) and will be updated on the next days.
  • b at the time of successful Contract creation is $1000 (=min(1000, 1000)). FDD= 0%
  • At 20:00, Balance $1000; Equity dropped to $900. a is now $900 (=min(1000, 900); b is $1000.
  • FDD = (1000-900)/1000*100=10%. Hit the committed daily maximum floating drawdown. The penalty is activated.

7. Max order limit

Max order limit is the maximum total number of orders in a certain time (max open order, max orders per pair, max daily, max weekly, max monthly).

The number of orders is unlimited. Users can enter the amount as they want.

If you trade exceeds the maximum number of orders committed, the user's account will be penalized.

  • Max open order: total number of open orders, this term takes effect after clicking [Confirm] this Commitment.
  • Max order per pair: the total number of open orders of the same pair of symbols, this term takes effect after clicking [Confirm] this Commitment.
  • Max daily order: the total number of orders allowed to be opened in a day, from 0:00 to 11:59 PM by Server time (GMT+3).
  • Max weekly order: the total number of orders allowed to be opened in a week, from 0:00 on Monday to 11:59 PM on Sunday of that week according by Server time(GMT+3).
  • Max monthly order: the total number of orders allowed to be opened in a month, from 0:00 on the 1st day to 11:59 PM on the last day of the month by Server time (GMT+3).

***Reminder: Commitment of Max daily/weekly/monthly orders are accumulated from the beginning of the day, week, and month, not the current time.

For example:

  • On Wednesday, you create a new "Trader's Guard", which commits a maximum weekly total of 5 orders.
  • However, on Monday and Tuesday, your total open and closed orders are 3.
  • After confirming the commitment, from now until the end of the week you can only open 2 orders left.

8. Loss Management

Loss management helps users to commit to maximum unrealized loss based on the initial balance (beginning of the day, beginning of the week, beginning of the month).

  • Daily total loss: Commit to the maximum unrealized loss of the day calculated based on the balance at the beginning of the day (0h by Server time).
  • Weekly total loss: Commit to the maximum unrealized loss in the week calculated based on the balance at the beginning of the week (0h on Monday to 23:59p by Server time).
  • Monthly total loss: Commit to the maximum unrealized loss in the month calculated based on the balance at the beginning of the month (0h the 1st day by Server time).
  • Loss (account): Commit to the maximum unrealized loss of the account calculated based on the initial balance.

Eg: Daily total loss is 10%.

  • Initial balance is $1000.
  • Your account has a profitable order, then you close it, the balance increases to $1100.
  • You then enter another order, the equity decreases to $900.
  • Loss will be calculated based on the initial balance of $1000.
  • So it is (1000-900)/1000*100=10% => Reach the maximum loss committed.

Note:

  • Loss is always calculated based on the initial balance of the day, week or month.
  • FXCE's server time is GMT + 2 (Winter - Spring) and GMT + 3 (Summer - Autumn).
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