I was thinking that auto liquidate has the same "issues" as using stops ... Either too tight or too loose. Always puking at the worst time. The option of cancelling/blocking opening orders is much better. I believe Risk Manager would watch the accounts and give the trader a tap on the shoulder to work out of positions. Panic selling/covering is not what good prop shops do. Your situation is different, so maybe best option for you.
So far I like this combo: SierraCharts to set the limit on the trading platform level and rithmic to set the limit at the broker level.
I had similar requirements some time ago but could not find any brokers who would provide this Risk Management I was trying to fund a trader or two on "First Loss" type of deal at retail level in futures space So my requirements was if Net liquidity goes to a predetermined level at any time of the day all positions should be liquidated . and all trading disabled and this set up can't be altered by individual trader , only be me as a funder Main issue was if a black swan happened and huge slippage happened beyond First loss .. my capital would be at risk. Some platforms offered daily loss limit but that would mean the trader could still open new positions next day etc The other requirements was I did not wanted to hand over my money to the trader so it was either he trades under a LPOA on my account or the second option was this - He has his own account, I park my money in a local bank and the brokerage would "link " that deposit to his trading a/c The brokerage was UOB futures in Singapore and they said the Bank could be any major Bank within Singapore jurisdiction. Any thoughts?
If there's a futures/equity broker that can set a max loss limit on the broker side with closing of open positions please let me know, I have a few customers for you Not some setting that you can disable on the client-side, because that's not working. -)
I would be happy to discuss this with you for Futures traders, any chance you can PM me to schedule a short call?
Thanks MattZ, but do you have it? Can you do that? For example, a $50k futures account has on the day a few closed losing trades and it has a current open trade and this current open losing trades makes the daily P&L at -$1000. Can you close the positions automatically and halt trading for the day?
We have access to a lot of software and risk settings, so let's try and explore one that applies to your needs. As I mentioned, please reach out, I promise that will only help. All our numbers are below.