The Strategy Stop Loss rule is created to protect you against incurring substantial losses.
This rule is evaluated each time a trade which has been opened by the strategy, is closed.
Deposit Currency amount - denotes amount in the currency of your initial equity deposit. If your strategy losses relative to your equity surpass a certain threshold (defined by you), then it will trigger of one of the following actions:
'Close all trades then disable my strategy' prevents further losses by closing all open trades and de-activating your strategy. The benefit of this option is that it prevents further losses by this strategy.
'Do not open new positions' will keep your strategy running but your open positions can still be closed by any position stop loss, position take profit or trailing stop loss rules you have applied to this strategy.
Strategy performance history
Each time a trade, that was opened by your strategy, is closed, Tradeworks will re-calculate the historical performance of your strategy to calculate the drawdown.
History cannot be changed. What's done is done. Therefore, if the Strategy Stop Loss rule activates, and you wish to continue using the strategy, we recommend that you make a clone of your strategy. If you do not do this, and then turn your strategy on again, it will likely activate the rule action once a new trade closes, due to the fact that the drawdown will not improve.
The drawdown is the amount, in your trading account deposit currency, of the greatest loss that your strategy has incurred.
Should your strategy be disabled by the Strategy Stop Loss rule, you can find this event logged in the Activity Feed.
Currently the Strategy Stop Loss rule is not supported in the backtester. If your strategy has a Strategy Stop Loss rule you can still run it in the backtester, but the Strategy Stop Loss rule will have no effect.