> For the complete documentation index, see [llms.txt](https://trada-llc.gitbook.io/trada-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://trada-llc.gitbook.io/trada-docs/copy-trading/configure-receiver/risk-protection.md).

# Risk protection

Protection enforces loss and profit limits **per receiver**, automatically. You define thresholds on the receiver's **Protection** tab and choose what happens when one is reached. This is the guardrail that acts before a mistake becomes a larger loss.

The tab has three accordion sections: **Daily Protection**, **Overall Protection**, and **Protection Action**.

## Daily Protection

Caps how much a receiver can lose or gain **in a single day**. Thresholds reset at the start of the next trading day. Each limit can be set as a **percentage of the account** or a **fixed dollar amount**.

* **Daily Loss** — example: 5% of a $10,000 account triggers when the day's losses reach $500. As a dollar amount: $300 triggers at a $300 net daily loss.
* **Daily Profit** — example: $1,000 triggers once the day's net profit reaches $1,000.

## Overall Protection

Caps total drawdown or profit for the receiver **since the copier started**, measured against the balance/equity at the time the receiver was added. Set as a percentage or a fixed amount.

* **Max Account Loss** — example: 20% of a $5,000 starting balance triggers if equity falls to $4,000.
* **Max Account Profit** — example: $2,000 triggers when equity reaches $7,000 from a $5,000 start.

## Protection Action

Choose what happens when **any enabled threshold** is reached. Each action has its own toggle, and they can run together:

| Action                | What it does                                                  |
| --------------------- | ------------------------------------------------------------- |
| **Send Notification** | Sends an in-app notification that the threshold was hit.      |
| **Stop Copier**       | Pauses copying on this receiver — no new trades are mirrored. |
| **Flatten Account**   | Closes all open positions on this receiver immediately.       |

{% hint style="info" %}
Notifications are delivered **in the app** (the bell in the top navigation and the Notifications page). Trada does not send email or push alerts.
{% endhint %}

## How it fits together

Thresholds and actions combine. With **Daily Loss 5%**, **Max Account Loss 20%**, and all three actions enabled, the moment *either* limit is reached:

1. You receive a notification.
2. The copier stops for this receiver.
3. All open positions on the receiver are flattened.

Every trigger is recorded in the [copier logs](/trada-docs/copy-trading/copier-logs.md) with the threshold value and the actions taken — for example, `Daily loss: -$520 | Threshold: -$500 | Action: Stop copier + Notify`.

{% hint style="danger" %}
**Flatten Account closes live positions.** When it fires, open trades on the receiver are closed at market — this can realise losses. Enable it deliberately, and pair it with thresholds you've chosen carefully.
{% endhint %}

## Related

* [Add & configure a receiver](/trada-docs/copy-trading/configure-receiver.md)
* [Copier logs](/trada-docs/copy-trading/copier-logs.md)
* [Working hours & scheduling](/trada-docs/copy-trading/working-hours.md)


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