RISK MANAGEMENT · v5.5.0

Liquidation-Resistant
Risk Engine

v5.4.0 introduced equity-based lot sizing + free margin guard after a real liquidation event. v5.5.0 adds signal-gated entry filtering on top. Multiple defensive layers — no SL, but no naive exposure either.

🛡️ FIVE DEFENSIVE LAYERS

How v5.5.0 Prevents Account Liquidation

Each layer kicks in at a different stage — entry, sizing, monitoring, recovery, emergency. Stacked, not separate.

⚖️
v5.4.0

Layer 1 — Equity-Based Lot Tier

Tier lot calculated from equity not balance. If account is in drawdown (equity < balance), EA picks lower-tier lots automatically.

lotBasis = (equity > 0 && equity < balance) ? equity : balance;

Before v5.4.0, balance-based tier kept opening tier-4 lots even when equity collapsed → free margin starvation → liquidation. ✓ Now defensive.

🛡️
v5.4.0

Layer 2 — Free Margin Guard

Before OpenNewMainTrade / OpenSPM / OpenDCA, EA calculates required margin via OrderCalcMargin():

if (freeMargin < reqMargin × 1.5) reject;

1.5× safety buffer means even bad trades don't fully consume free margin. 60sn fail cooldown prevents retry spam. ✓ Multi-fold safety.

🎯
v5.5.0

Layer 3 — Signal-Gated Entry

Before any SPM opens, EA reads buy_score / sell_score from 12-indicator engine. If opposing signal ≥ 50 (45 for SPM3+), trade is rejected.

Translation: "if signal already says we're wrong, don't open another in the wrong direction." ✓ Fragile entries blocked.

🔄
v5.5.0

Layer 4 — HEDGE_BOOST Conversion

If SPM3 would open against trend, EA converts to HEDGE_BOOST instead — opposite direction, 1.5× lot, signal-confirmed.

Mechanical zigzag ditched in favor of trend-aware hedge strengthening. ✓ ~70% trap reduction.

🚨
PERMANENT

Layer 5 — MaxDrawdown Last Resort

If despite all layers, account hits MaxDrawdownPercent = 90%, emergency cycle reset triggers. (Should never happen with layers 1–4 active.)

Never** added to losing side blindly — every entry passes through 4+ checks. ✓ Defense in depth.

DESIGN

NO Stop-Loss (deliberate)

SPM system handles loss — closing at SL would lock losses. Hedge layers cover MAIN's drawdown, FIFO closes when net profit ≥ target.

✗ NEVER closes ANA at loss · ✗ NEVER closes hedge at loss

✓ FIFO can close ANA at loss only when SPM profit covers it.

📊 BALANCE TIER LOT SIZING

Lot Scales with Balance, Capped Per Symbol

Every symbol category has its own tier — not a one-size-fits-all multiplier. Conservative on small accounts, scaling up safely.

BalanceFOREXBTC / CryptoXAU / XAG / Alt
$0 – $2000.04 lot0.01 lot0.01 lot
$200 – $5000.06 lot0.02 lot0.02 lot
$500 – $10000.08 lot0.03–0.050.03–0.05
$1000+0.12 lot0.05–0.080.05–0.08

In v5.4.0+, these tiers use equity as the basis (not balance) — so a $1000 account in 50% drawdown trades like a $500 account, not a $1000 one. Safety multipliers from Margin Guard + OpenLotBalancer further reduce lot in tight margin.

📐 ADAPTIVE FIFO TARGETS

Close Targets Scale With Account Size

Smaller accounts close at smaller profit targets. Time decay reduces target on long-held positions to prevent stuck cycles.

💰

Balance-Adaptive Target

Balance < $200 → $3 target
Balance < $500 → $5 target
Balance < $1000 → $8 target
Balance ≥ $1000 → $15 target

⏱️

Time Decay (long-held positions)

Open 1–2h → 80% of target
Open 2–4h → 60% of target
Open 4h+    → 40% of target
Floor: $2 minimum

Risk Engineered. Not Avoided.

5 layers between your account and a margin call. Equity-aware sizing + signal-confirmed entry + hedge-strong recovery.

ByTamer FX Assistant

AI Support