diff --git a/docs/includes/protections.md b/docs/includes/protections.md index 23c7d9654..795478745 100644 --- a/docs/includes/protections.md +++ b/docs/includes/protections.md @@ -72,6 +72,8 @@ def protections(self): `MaxDrawdown` calculates the maximum relative drawdown using the account's equity curve within the `lookback_period` in minutes (or in candles when using `lookback_period_candles`). It evaluates the portfolio's peak-to-trough declines by considering the starting balance and the cumulative profit of all trades within the window. If the observed drawdown exceeds `max_allowed_drawdown`, trading will stop for `stop_duration` after the last trade - assuming that the bot needs some time to let markets recover. +The default calculation method is the sum-of-profit-ratios method (`method: "ratios"`) for backward compatibility. To use the standard peak-to-trough equity drawdown (recommended), set `method: "equity"`. + The below sample stops trading for 12 candles if max-drawdown is > 20% considering all pairs - with a minimum of `trade_limit` trades - within the last 48 candles. If desired, `lookback_period` and/or `stop_duration` can be used. ``` python