---
title: "How to Set a Max Draw Down Limit for an Auto Trader"
description: "Set a loss limit for your bot to automatically close all open trades and protect your account"
url: https://help.optionsautotrader.com/en/articles/141-how-to-set-a-max-draw-down-limit-for-an-auto-trader
collection: "Options Auto Trader 101"
updated: 2026-06-10
language: en
---

# How to Set a Max Draw Down Limit for an Auto Trader

Set a loss limit for your bot to automatically close all open trades and protect your account

The **Max Draw Down** feature acts as a safeguard to help you limit potential losses across **all open trades** on a specific bot. Unlike a traditional stop-loss that applies to individual trades, the max drawdown setting monitors the **combined losses** of all open positions and takes action when your specified threshold is reached.

### What It Does:

Once your open trades reach the total loss amount you’ve set, the bot will **automatically close all open trades** tied to that bot and turn off the auto trader so that it stops entering trades.

### How to Set a Max Drawdown Limit:

1.  **Open Your Bot Settings**
    
    -   Go into the bot you'd like to configure.
        
    -   Click the **gear icon** in the top right corner.
        
2.  **Navigate to Account Safeguards**
    
    -   Select the **Account Safeguards** section from the settings menu.
        
3.  **Set Your Draw Down Limit**
    
    -   In the **Max Draw Down Limit** input field, enter the maximum dollar amount you're willing to risk across all open trades for that bot.
        
    -   Example: If you entered **$3,000** and you have 3 open trades, each losing $1,000, the bot will automatically close all of them once that limit is hit and then turn the auto trader off.
        
4.  **Save Your Changes**
    
    -   Click **Save and Close** to apply the new safeguard.
        

### Why Use Max Draw Down Limit?

-   It gives you broader risk control across multiple trades
    
-   Helps enforce discipline during volatile market conditions
    
-   Prevents overexposure from cumulative losses