Risk Management · April 30, 2026 · 5 min read
Why an Equity Stop Is a Critical Bot Setting
Define the maximum authorized session loss before choosing a stake or target.
A boundary, not a forecast
The equity stop tells the runtime when to stop taking risk after a defined decline. It cannot ensure an exact exit amount when an open contract settles beyond the boundary.
Sequence-aware preflight
DONKOFX also compares the worst-case configured recovery sequence with the loss budget. This matters because checking the stop only after settlement can be too late.
Choose it first
Decide the acceptable dollar loss and percentage before adjusting stake. If a strategy cannot fit, reduce exposure, use demo, or do not run it.
This article is educational. Trading involves risk, strategy results can change, and no automated system can guarantee profit.