Max Drawdown and Circuit Breakers

Lesson Overview

In "Trading Risk Management" → "Portfolio-Level Risk", this lesson "Max Drawdown and Circuit Breakers" builds knowledge you can apply immediately.

Set account max drawdown (e.g., 10%) with forced de-risk or pause. Daily loss caps prevent revenge trading. Rules must be written and confirmed pre-session.

Core Concepts

These points align with the video walkthrough—take notes as you watch.

• ▸Set account max drawdown (e.g., 10%) with forced de-risk or pause.
• ▸Daily loss caps prevent revenge trading.
• ▸Rules must be written and confirmed pre-session.

Practical Application

After studying, complete the companion practice lesson to move from understanding to doing.

• ▸Validate concepts on MT4/MT5 demo
• ▸Mark structures/indicators mentioned on live charts
• ▸Log operational steps in your trading journal

FAQ

• ▸Q: How does this lesson fit the course? A: Part of "Portfolio-Level Risk"—follow the curriculum order.
• ▸Q: What do I need? A: Demo account and notes; quant lessons need a Python environment.
• ▸Q: How do I know I've mastered it? A: Pass the quiz and explain three key points of Max Drawdown and Circuit Breakers on your own.