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Stop Trading For The Day

What Is Stop Trading For The Day?​

The Stop Trading For The Day action halts all further trades in the strategy for the remainder of the trading session. Once triggered, no additional positions will be entered, regardless of future conditions being met.

How Stop Trading For The Day Works​

  1. A condition is evaluated.
  2. If the condition is true, the Stop Trading For The Day action is executed.
  3. This prevents any further trade triggers or actions from being executed for the rest of the trading day.

Example Workflow​

  • Condition: “Max Loss exceeds ₹5,000”
  • Action: Stop Trading For The Day

Why Use Stop Trading For The Day?​

  • Daily Loss Protection:
    Automatically cuts off trading activity to avoid further losses once a pre-defined risk threshold is hit.

  • Preserve Capital:
    Helps maintain discipline and avoids over-trading during volatile or unfavorable market conditions.

  • Simple Risk Control:
    Ensures a hard stop in the strategy execution without needing to manually monitor market conditions throughout the day.

Next Steps​

  • Set Clear Conditions:
    Use metrics like max drawdown, P&L thresholds, or indicator-based signals to decide when trading should stop for the day.

  • Combine With Other Actions:
    You can pair this with Square Off All Positions to exit open trades and ensure no new ones are created afterward.

  • Backtest Thoroughly:
    Run this action in backtest scenarios to evaluate how it impacts profitability and risk exposure across different market conditions.

Note:
The Stop Trading For The Day action only halts new trades. It does not automatically square off existing positions unless explicitly paired with a Square Off action.