Set a maximum drawdown halt
When trailing drawdown crosses your limit, Lune runs your On Limit Breach action on the account.
Maximum drawdown is a trailing stop for an account. You set the percent drop you are willing to take from the account's high-water mark. When the account crosses it, Lune acts on the account, so a bad run does not keep going.
What drawdown measures#
Drawdown is how far the account has fallen from its equity high-water mark. Lune tracks the high-water mark, the best equity the account has reached, then measures the drop from it as a percent.
You set Max Drawdown %, the percent drop that trips the limit. A loss limit caps the loss for a fixed day or week. Trailing drawdown follows the account's best equity and moves the trigger up as the account grows.
High-Water Mark Reset#
The High-Water Mark Reset decides how often the high-water mark starts over. It sets whether the drawdown trails across sessions or resets on a schedule.
NeverTrue trailingOptionalThe high-water mark carries across sessions. Drawdown trails the account's all-time best equity.
DailyReset each dayOptionalThe high-water mark resets at the start of each day. Drawdown measures the drop within the day.
WeeklyReset each weekOptionalThe high-water mark resets at the start of each week. Drawdown measures the drop within the week.
What happens on a breach#
When your trailing drawdown crosses the limit, Lune runs the account's On Limit Breach action. You set this action on the account, and it applies to drawdown the same way it applies to your loss limits and profit targets.
Alert OnlyNotifyOptionalLune alerts you and leaves the account trading.
Lock AccountBlock entriesOptionalLune locks the account to exits only. No new positions open, and you can close what is open.
Flatten & LockClose and blockOptionalLune closes every open position on the account, then locks it to exits only.
Exits still work with Alert Only and Lock Account, so you can close what is open.
Set a drawdown limit#
Go to the Risk page and pick the account.
Set the percent drop from the high-water mark that should trip the limit.
Pick Never for true trailing, or Daily or Weekly to reset on a schedule.
Lune tracks drawdown live and runs your On Limit Breach action if it crosses the limit.
With Lock Account or Flatten & Lock, the account stops taking new entries on a breach. When you are ready to trade it again, unlock the account yourself. Lune does not resume it for you.