Assign risk limits to a master account

Learn how to assign risk limits to copy-trading and MAM master accounts to protect against excessive losses by automatically blocking accounts when predefined thresholds are reached

To mitigate the risk of losses in copy-trading and MAM master accounts, it is possible to set risk limits on these accounts.

Risk limits can be assigned to newly registered traders or to accounts that demonstrate volatile returns. This helps safeguard both the traders who manage the master accounts and the investors who subscribe to them against significant losses.

When a master account reaches at least one of the assigned risk limits, the following occurs:

• All open positions on the account are closed.

• All pending orders are canceled.

• The account is blocked and no further trading is permitted on this account until it is unblocked.

Assign risk limits to a master account:

1

Go to Investment Platform and expand the required platform instance.

2

For copy-trading master accounts, go to B2COPY > Masters. For MAM master accounts, go to Mam > Masters.

3

Select a master account, and click Edit.

4

Go to the Risk Limits tab.

5

Assign the following types of risk limits or their combination to the selected master account:

Assign risk limits to a master account

Daily Risk Limit (%)

In the Daily Risk Limit (%) field, enter the maximum daily loss as a percentage of the master account equity calculated at the start of the day, as per the MT or cTrader server time (00:00), and click Save.

When the limit is assigned, the Risk Limit Equity field displays the equity value by reaching which the account will be blocked. The account remains blocked until the start of the next day, as per the server time (00:00).

Daily Risk Limit (Account Currency)

In the Daily Risk Limit field, enter the maximum loss amount per day, and click Save.

The daily risk limit is denoted in the currency in which the selected master account is denominated.

When the limit is assigned, the Risk Limit Equity field displays the equity value by reaching which the account will be blocked. The account remains blocked until the start of the next day, as per the MT or cTrader server time (00:00).

The daily risk limits assigned to master accounts on the same day when the accounts have been created begin to work the next day, as per the server time (00:00). For those accounts, the limits are calculated against the equity values recorded at 00:00 MT server time.

Loss Limit (Max Loss Amount)

In the Loss Limit field, enter the maximum loss amount, and click Save.

The loss limit is denoted in the currency in which the selected master account is denominated.

If the combined total of realized PnL and unrealized PnL on the master account exceeds the assigned maximum loss amount, the account is blocked. To unblock the account, click Reset risk limits and activate account.

Max DD Risk Limit

To assign the maximum drawdown limit to a master account, enter the desired percentage value in the Max DD Risk Limit (%) field, and click Save.

You cannot set a Max DD limit to be equal to or less than the current Max DD value on the account. For example, if the current Max DD on a master account is 20%, the Max DD limit cannot be set to 20% or lower.

If the Max DD limit assigned to the master account is reached, the account is blocked. To unblock the account, click Reset risk limits and activate account.