Broker: AMP futures data feed: Rithmic platform: Rithmic trader pro I’m interested in implementing a hard daily loss limit ($300) that cannot be exceeded, which would halt my ability to trade for the rest of the day. Can someone please tell me how to set this up?
Your mind is the only true halt to trading. You can set all the hard limits you want in software, but if you want to keep trading you'll find a way to do so. Otherwise you would simply stop trading after a $300 loss. No piece of software is going to really help here. If you think it might, then it might also help to paste the borders of your monitors with sticky notes that all scream STOP TRADING AT -$300!!!!!!!!!!!!!!!!!! with some bright glaring ink. This way you won't be tempted to go back into the settings screen and turn-off the auto-liquidate/prevent trading switches.
I have two comments and you may not like either of them. First, no trader can be successful without strict discipline. So if you have a rule to not trade after $300 in losses, you need to get the fuck up and walk away. Second, It's not a good idea. If you have a proven and well tested trade plan that offers you an edge by taking your signals and observing your rules, then you need to take your signals. I've started many days in the hole and ended up well in the green. You can't let your head get sideways because you took a few losses in a row, that's trading but given a viable trade plan, you will also get a number of wins in a row...but not if you're not present.
I've started many days in the hole and ended blowing up my account. A maximum daily loss limit would have saved me several of these. yeah I suck but I am glad to hit my max loss and call it a day. Tomorrow is another session with its opportunities. And that's the most important. To be around for tomorrow.
How about every time you break your rule, you take a knife and make a small cut on your wrist. Too many of those you might end up passing out and die. TOo extreme?
Agreeing with what you Speedo said, I do have a limit set on my account. Not for anything else except some issue with the Algo going crazy*. Of course it is well designed so there are no less than 5 checks that makes sure this does not happen, but a broker trigger that disallows new positions or taking too many contracts, is just another safety valve. * disorderly markets, connection issues, exchange issues, brokers issues etc.
Then the two most likely explanations are, you didn't have a viable trade plan or you lacked the discipline to trade it as designed. No one should begin to risk money until they know their plan provides an edge and they have the discipline required to trade it. I've blown several accounts prior to having both conditions in place.