Your grid example makes the balance-versus-equity check useful: a smooth closed-trade curve can hide losses in positions that are still open. I would replay the basket's worst open loss and its total size before each recovery order, including one rejected order. That shows whether the risk limit still holds when the intended recovery trade never opens.
I have spent years studying trading rules and chart patterns. My work here is mainly coding and testing those rules. For a grid, I would set a basket loss limit and maximum total size before adding another recovery order, and count open losses against that limit. Do you use a fixed basket loss limit, or decide from the chart?
Arnold Holm
I turn your trading setup into an MT5 bot with your prop firm's daily and max loss rules built in. Try it free on demo first.
Your grid example makes the balance-versus-equity check useful: a smooth closed-trade curve can hide losses in positions that are still open. I would replay the basket's worst open loss and its total size before each recovery order, including one rejected order. That shows whether the risk limit still holds when the intended recovery trade never opens.