Algorithmic & Prop Trading Glossary
Clear, math-backed definitions of quantitative risk metrics, MetaTrader algorithmic parameters, and prop firm evaluation rules.
Position Sizing & Lot Size
The mathematical calculation of contract or lot volume allocated to a trade to ensure risk matches an exact percentage of account equity.
Trailing Stop Loss
A dynamic stop-loss order that automatically tracks market price at a set distance as the trade moves into profit, locking in gains while leaving upside open.
Drawdown Recovery Rate
The mathematical percentage gain required to restore an account to its previous peak equity following a portfolio loss.
Break-Even Stop
Moving a trade's stop-loss order to the exact entry price (plus spread/commission) once the position reaches a predefined profit milestone, eliminating downside risk.
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