YourBourse launches Stop-Out plugin for FX brokers to govern abusive scalper flow
The Stop-Out tool is believed to play a crucial role in fostering transparent, efficient, and secure trading environments. Brokers can also expect increased efficiency and profitability in their prop trading endeavors.
Your Bourse has announced the launch of the Stop-Out Plugin, a tool designed to enhance trading management and offer brokers a powerful tool to govern abusive scalper flow.
Stop-Out allows brokers to stop out or disable accounts on the MT4 Server based on predetermined equity thresholds.
With its comprehensive functionality and customizable parameters, the Stop-Out Plugin brings greater control and efficiency to prop trading.
Monitoring the equity of individual accounts on the MT4 Server
Your Bourse’s Stop-Out Plugin operates by continuously monitoring the equity of individual accounts on the MT4 Server, the technology vendor explained. Upon installation, the plugin assesses the first deposit amount for each account and subsequently tracks all trades executed within those accounts.
It compares the current equity to specified values, known as the “negative stop-out” and “positive stop-out” parameters. Suppose the equity falls below the negative stop-out value or rises above the positive one. In that case, the plugin takes action by closing all open positions and limit/stop orders for the respective account and disabling it. The account is then labeled with a “failed” or “passed” indicator, depending on the stop-out condition met.
The Stop-Out Plugin allows brokers to configure different negative and positive stop-out parameters for various groups of accounts, offering greater flexibility and customization. This feature enables brokers to tailor their risk management strategies to specific trading groups, ensuring precise control over each account’s performance and risk exposure.
After installing the plugin in MT4, all the further settings and management are carried out through the user-friendly Your Bourse platform interface.
Your Bourse’s Stop-Out Plugin automatically monitors and disables accounts based on equity thresholds in order to empower brokers with enhanced control, risk management, and protection against scalping activities.
Such tool is believed to play a crucial role in fostering transparent, efficient, and secure trading environments. Brokers can also expect increased efficiency and profitability in their prop trading endeavors.
Your Bourse offers a smooth integration into existing setups for a seamless risk management experience tailored to each client’s requirements.
Stop-Out Plugin as defense against scalpers, but also valuable for prop trading contests
Your Bourse gave an example of how the Stop-Out Plugin works, noting its value for prop trading contests and to deter scalpers, among other applications:
“To illustrate the practical application of the Stop-Out Plugin, consider a scenario with two trading accounts, “Green” and “Yellow,” both hosted on an MT4 server equipped with the plugin. Assuming a negative stop-out parameter of 0.90 and a positive stop-out parameter of 1.5, any account with equity falling below 90% of the first deposit or rising above 1.5 times the first deposit will be disabled.
“Suppose the “Green” account starts with an initial deposit of $100 and experiences a loss of $15, reducing its equity to $85. In this case, the Stop-Out Plugin will promptly close all open positions for the “Green” account and disable it, changing its name to “Green – FAILED.”
“Concurrently, the “Yellow” account, with an initial deposit of $100, sees a profit of $60, resulting in an equity of $160. The plugin will similarly close all open positions and limit/stop orders for the “Yellow” account while changing its name to “Yellow – PASSED.”
“While the Stop-Out Plugin is particularly valuable for trader contests where brokers allocate funds to trading accounts, it offers numerous benefits in other scenarios as well. One notable application is its utilization as a robust defense against scalpers.
“Scalpers, who aim to profit from short-term price discrepancies, can be detrimental to brokers’ trading operations. By configuring the stop-out parameters appropriately, brokers can effectively deter scalpers, ensuring fair and secure trading environments.”