Prop Guard MT5: Daily Loss and Max Drawdown Deadline Visualizer

Related: Daily Profit/Loss Percentage Overlay for Prop Firm Daily Loss Limits - another powerful indicator for MetaTrader 5 traders.

Prop Guard MT5 is a powerful indicator designed for traders operating within strict risk management rules, particularly those imposed by prop firms. It transforms your daily loss limit and overall max drawdown into a visual price level on the chart, known as the 'dead-line'. This innovative tool helps you make informed trading decisions, reduce emotional reactions, and stay within your defined risk boundaries.

Also recommended: Prop Firm Daily Loss Limit Indicator - similar indicator with strong performance on MetaTrader 5.

The core concept revolves around the 'dead-line', a dynamic chart level that represents your risk limits. When the price reaches this line, your account would hit the configured drawdown boundary.

## Core Concept: The 'Dead-Line'

Prop firms often set loss limits in currency or percentage terms, both daily and overall. Prop Guard MT5 translates these limits into a visual price level:

- **Net Long Position**: The dead-line is the price below the current market where your allowed daily or overall loss is exhausted.

- **Net Short Position**: The dead-line is the price above the current market where your allowed daily or overall loss is exhausted.

This line updates in real-time, reflecting your current equity, open positions on the chart symbol, and the symbol's tick value/size, ensuring compatibility across multiple assets.

## Indicator Display

Prop Guard MT5 provides a comprehensive visual representation of your risk limits:

- **Effective Dead-Line (Main Line)**: Displays the most restrictive limit, either daily or overall, whichever is closer to the current price.

- **Optional Separate Lines**: You can choose to display daily and overall dead-lines separately for a more detailed view.

- **On-Chart Dashboard Panel**: A compact panel that shows crucial information, including balance, equity, maximum allowed loss, minimum equity levels, long/short lots, dead-line prices, effective rule, and remaining buffer in currency and points.

## Trailing Drawdown Modes

Prop Guard MT5 supports two drawdown models:

- **Trailing Drawdown On**: The dead-line is based on daily and overall peak equity, allowing the risk line to 'trail' as you reach new equity highs.

- **Trailing Drawdown Off**: The dead-line is based on fixed reference values:

- Daily Reference: Start-of-day balance.

- Overall Reference: Manually input start capital.

## Safety Handling

Prop Guard MT5 is designed with safety and transparency in mind:

- **No Open Positions**: If there are no open positions on the symbol, the lines are hidden, and the dashboard displays 'No Positions'.

- **Hedged/Near-Zero Net Sensitivity**: When the net exposure is effectively neutral, the lines are hidden, and the dashboard shows 'Hedged (No Dead-Line)'.

- **Limit Violation**: In case of a limit violation, the dashboard displays 'Violated!', and the remaining buffer becomes negative.

## Inputs and Customization

Prop Guard MT5 offers a range of inputs for customization:

- **Daily/Overall Max DD (%)**: Set your daily and overall loss limits in percentage terms.

- **Trailing Drawdown Mode**: Enable/disable peak-equity trailing.

- **Account Start Capital**: Input your initial capital for overall reference when trailing is off.

- **Show Daily & Overall Lines Separately**: Choose to display both daily and overall limits or only the effective line.

- **Dashboard Placement**: Adjust the dashboard's corner, X-offset, and Y-offset.

- **Line Colors/Width**: Customize the visual appearance of the lines.

- **Warning Threshold (%)**: Highlight the remaining buffer when it's close to violation.

## Notes and Limitations

- **Symbol-Specific Logic**: The dead-line is calculated based on positions on the current chart symbol only. For multiple symbols, attach Prop Guard MT5 to each relevant chart.

- **Visualization Tool**: Prop Guard MT5 is a visual aid and does not execute trades or enforce rules automatically. It empowers traders to make informed decisions while adhering to risk management guidelines.

You may also like: ATS Prop Rules Monitor: Comprehensive Prop Firm Challenge Scoreboard - excellent alternative for indicator users on MetaTrader 5.

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• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.