Setting SEPAR limits: where do the right numbers come from?

SEPAR is a monitoring tool; its quality depends on the numbers you feed it. An arbitrary equity limit either hedges too early or far too late.

Where to start

• Loss tolerance: what is the largest amount you can absorb without changing your plan? Your limit should sit below it.
• Strategy behaviour: what is your account’s normal fluctuation? A limit tighter than normal noise produces pointless hedges.
• Time window: over what horizon does the monitoring matter — daily, weekly, the account’s whole life?

After it fires

Take the MetaTrader alert seriously, avoid emotional decisions, and open the Trading Emergency if needed. Full settings guide: SEPAR.

Frequently asked questions

Should I configure each symbol separately? SEPAR works on the current chart’s symbol; if you trade several symbols, each chart needs its own settings.

I hold several positions — which one does SEPAR close? The hedge request targets that chart’s symbol; multi-symbol accounting is yours to manage.

How do I backtest my limit? Review your account’s past fluctuation and set the limit so only abnormal moves trigger a hedge, not everyday noise.

Should I set SEPAR’s limits once and forever? No; your numbers follow your life and market conditions and should be reviewed as those change. What stays fixed is the method of reaching the number, not the number itself. A periodic review — say, at each settlement period’s end — gives the settings discipline without letting every small mood touch them.

Next step

Step-by-step setup: the SEPAR guide. For the general logic of loss limits, read “Risk per trade” in this journal.

Three inputs for setting SEPAR limits

• Loss tolerance: the largest amount that does not change your plan
• Normal account fluctuation: the limit must not be tighter than the noise
• Monitoring window: daily, weekly, or the account’s life
• Write the numbers first, then enter them in settings
• Review the numbers after every hedge

The full settings guide: See it.