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.
Exemple
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.
Comment Noon Barbari utilise Circuit Breaker
Chaque concept ici est implémenté dans la plateforme. Ouvre la documentation ou l'outil concerné pour le voir en action.
Configure safety in noonbarbari →Termes liés
- Risque
Maximum drawdown
The deepest peak-to-trough decline observed across the entire equity curve.
- Risque
Risk per trade
Dollar amount (or % of equity) you lose if the stop on a single trade hits.
- Risque
Position size
How many units of an asset a trade holds — derived from risk budget and stop distance.
- Risque
Cooldown Period
A number of bars the strategy must wait after an exit before it may re-enter.