A circuit breaker protects the account rather than any single trade. Common breakers stop opening new positions when equity falls a set percent from its peak (max drawdown), when the day's loss exceeds a limit (resetting the next day), or when too many positions are already open (max concurrent).
The purpose is to stop a bad run from compounding into a catastrophic one — to force a pause when the strategy is clearly out of sync with the market. Existing positions are typically managed by their own stops; the breaker governs new risk.
Example
A daily-loss breaker set at 5% halts all new entries after the account is down 5% on the day, then re-arms at the next session.
How Noon Barbari uses Circuit Breaker
Every concept here is implemented in the platform. Open the relevant docs or tool to see it in action.
Configure safety in noonbarbari →Related terms
- Risk
Maximum drawdown
The deepest peak-to-trough decline observed across the entire equity curve.
- Risk
Risk per trade
Dollar amount (or % of equity) you lose if the stop on a single trade hits.
- Risk
Position size
How many units of an asset a trade holds — derived from risk budget and stop distance.
- Risk
Cooldown Period
A number of bars the strategy must wait after an exit before it may re-enter.