Set Stops

Use the Risk configuration to add a stop-loss or a drawdown limit to a backtest. Build a Risk object and pass it to backtest() with the risk= keyword.

Fixed percentage stop

Exit the position if it moves against you by more than value percent:

from backtest360 import Risk

risk = Risk(stop="fixed", value=0.05)   # 5% stop

Trailing ATR stop

Trail the stop at value × ATR(14) below the running high-water mark:

risk = Risk(stop="trailing_atr", value=2.5, atr_period=14)

Circuit-breaker drawdown limit

Flatten the position if the running drawdown exceeds 20%:

risk = Risk(max_drawdown=0.20)

Combine stops and drawdown limit

risk = Risk(stop="trailing", value=0.08, max_drawdown=0.25)

Pass to backtest

Pass the Risk object to backtest() and read the realized drawdown back from the statistics. Metrics are keyed by their stable id, so max_drawdown is the drawdown value:

result = client.backtest(strategy, df, risk=risk)
print(result.stats["max_drawdown"])   # e.g. -0.18

Stop types reference

stop value	Description
"fixed"	Fixed percentage below entry
"trailing"	Trails the high-water mark by a fixed percent
"atr"	Fixed ATR multiple below entry
"trailing_atr"	Trails the high-water mark by ATR multiple
None	No stop (default)