Max Loss Per Trade

Setting key
max_loss_per_trade_mode
Default
dollars ($700 flat cap)

What it does

Per-trade risk cap, independent of the daily and weekly circuit breakers. In dollars mode (the default), no single defined-risk trade can be sized past a flat $700 max loss. Switch to pct mode to size the cap as 2% of live NLV instead, which scales with account size.

When to change it

Switch to pct mode if you want the per-trade cap to grow or shrink with the account rather than staying fixed. Raise the dollar cap above $700 only if you have deliberately decided a single trade can carry more risk than the default.

Safe range

Dollars mode: $100 (tight) to $1,000 (loose). Pct mode: 1% to 3% of NLV.

Example

$50,000 account in the default dollars mode. Every new defined-risk trade is sized so its max loss does not exceed $700, regardless of account size. Switching to pct mode at 2% would instead cap it at $1,000 on this account.

Financial Information Disclaimer

This site provides general information about ACondor, a software tool for automating options trading strategies. Nothing on this site is investment, tax, or financial advice. Options trading involves substantial risk of loss. Past behavior of any strategy does not guarantee future results. Consult a licensed financial professional before trading options. ACondor may earn a commission from affiliate links at no extra cost to you.