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Why drawdown caps matter

Published July 9, 2026

The fastest way to blow an account is to keep averaging into a losing position with no limit. A drawdown cap sets a hard ceiling on how much open risk a strategy may carry; once approached, the system stops opening new averaging trades. It's the difference between a controlled pause and a catastrophic loss.

Botomout's engine pairs a configurable drawdown cap with loss-booking and trailing take-profit, so winners are protected and losers are contained. Returns matter — but survival matters more. Try the numbers yourself with our risk calculator.

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