Measure the Depth and Duration of Losing Periods
The source emphasizes limiting risk at trade and period level and warns against increasing trading size too quickly after profitable periods. Those principles naturally lead to monitoring drawdown.
Validation principle
Drawdown is an FX Nova Bot engineering extension rather than a specific formula taken from the source: it measures decline from an equity peak and can be tracked in money, percentage and duration. It provides information that average profitability alone cannot show.
The system should distinguish CURRENT_DRAWDOWN, MAX_DRAWDOWN and recovery duration, then connect thresholds to the existing Drawdown & Exposure Monitor and risk-permission states.
Connected FX Nova modules
Educational software-engineering material. Source-specific numerical rules are identified as methodology rules; production thresholds require independent testing and sufficient data.