I need an API that sets a Max Daily Loss Limit so that I will be closed out of all open positions if the loss limit is exceeded and I am locked out from trading any further for the trading day I know it is possible to create a Python API for it and I am willing to pay for it too I know this function exists with DAS trader but even if I am locked out from DAS trader I would still be able to make trades on IBKR (which defeats the purpose).
Ultimately you control your trading account, you can always override software and carry on trading. If you are trading in isolation there is no risk manager to enforce a daily loss limit. If you cant stop yourself when losing it is a sign you aren't emotionally cut out for the style of trading you are doing. I'm not cut out for discretionary trading myself, i have to algo trade, with a fixed number of well defined signals. It is hard, after a few losers in a row, the temptation is to 'fire up your emotions' and try to win it all back in one go. This sometimes works, but eventually leads to a very big losing day.
Many prop firms have this function Would really appreciate if anyone with knowledge on the API can advise whether this can be done.
You can write custom software to auto liquidate you, but custom software can not really stop you from trading more if your mind is still set on it. A prop firm will have admin rights to each trader's account to set a loss limit you cannot change, but you, trading by yourself, will know the password that changes or deletes any loss limit you have set. IB don't have this kind of feature on the server side anyway, not that i am aware of. But some other execution providers do. For example, I trade with AMP futures, they have set a daily 75% loss limit set on all accounts which customers cannot override. I can set earlier loss limits myself, like 10% or 1K. But i can always delete my own set loss limits on any given day because i know my password and then carry on trading. Maybe i could ask AMP to set a custom loss limit on my account and they could do it with their admin rights over my account. Then i cant override it. But probably not, they probably don't want to get involved in that kind of stuff. They are a low cost broker not a prop firm. But some introducing brokers might be prepared to offer that service.
Do you know roughly how much it might cost to program this? I am happy to engage a developer who can assist with this
Depends on how you want to get locked out, there are different ways for that, you can mail me here rajni@polybyte.io to discuss more.
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You can do this easily by using Sierra Chart as your front end. Can You Set Daily Loss Limit? https://www.sierrachart.com/SupportBoard.php?ThreadID=53153