Auto time based Kill Switch

Hi @nithin ,

Can we have a Auto kill switch triggered based on 2 criteria’s

  1. If the max loss is crossed for the day - this has been requested my many users I guess

  2. This is very unique to me. I am a morning trader and usually finish my trading by 10 - 10.30 am if I trade more it end up doing over trading / scalping and end up turning my morning profit into loss or increasing my morning loss.

So can we please have a time based auto kill switch , which if I set at say 10.30 , will terminate all my trades and lock the system.

I need this as psychologically I fail to hit the kill switch manually most time in morning & end up trading the entire day when I have a loss in the morning to cover it or some form of revenge trade on loosing morning profit

Hope you understand, please help

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These are on our list of things to do.

The issue with 1 is that today we don’t track customer P&L to be able to trigger the kill switch. As a first step, we will give the option to enable it at the end of the day. Only post that can we build for intraday.

For the time-based kill switch, @MohammedFaisal this should be straight forward. Can we speak to the tech team?

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@nithin Can you please give an update on the SL based kill switch , I think this will build a discipline and save many of us from big losses ( obviously it should be optional )

The big issue for us right now is to capture live MTM for all customer positions continuously. It is a big technological challenge, especially if a certain MTM change has to lead to some action (like kill switch).

We will most likely do this first on an end of the day basis.

Ah damn, I just realized that I had answered this earlier on the thread as well. :slight_smile:

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@nithin thanks for the reply . I understand the challenge you have on you hands . May I suggest a half solution : you have a challenge to track live MTM right , then how about tracking closed position ? . Let’s suppose I have have done 3 trades for the day and closed in red and my Day SL is -5000 then you can check the MTM(closed position) every 10-15 min and [ if MTM >= -5000 then trigger Kill switch . No matter what may be the loss , atleast overtrading might be controlled!! What do you think ?

The issue is scanning every 10 mins for lakhs of customers. There are many edge cases. We will have to scan through all positions, what if a new position gets taken within the time from when we scan to when we trigger kill switch? This is just one edge case, there are tons more.

Also if we allow for a kill switch to be quickly enabled or disabled, it will not solve the purpose. It has to be like what it is now, which is atleast takes overnight ot enable the account again. So if we by mistake trigger kill switch and if a customer can’t enter new positions, it will come back to us.

@nithin – How about Zerodha’s partners like Sensibull or Streak offering auto-square off for intraday traders based on PnL?

Sensibull already offers a WhatsApp notification whenever PnL hits a predefined Profit or loss(at client level). Hence, adding auto-square off shouldn’t be a big deal (as they already have details of all open FnO positions).

Think this feature would help manual retail traders who are stuck in “hope” trades & on that one bad day end up blowing their accounts :slight_smile:

Alerts vs auto-squaring off have different implications. A wrong square off could potentially end up becoming liabailty of the platform. Also, if it is auto, it must first get approvals for being an algo and there are a bunch of other issues because of this.

Hi Sir @nithin,
I really appreciate your Response to Every Customer on priority bases.

I have One Suggestion, As per the Above Conversation Required Huge Technology change for Develop the Auto Kill Switch based on Defined Loss Per day, My Suggestion here is Why Can’t we go for monthly Charge Basis Like Privilege Customers or Pro Customers. What ever brokerage you’re missing due to Auto Kill Switch will cover that charges with Pro Customers. As well as this charges will help to brokerage company to maintain the Technology. We know that If any Technology want to Develop that will Happen with Zerodha Only , Because you only Introduce what is Trading Technology to India Stock market.
Thanks & regards
D.Durga prasad
[email protected]

This isn’t about the cost. Tracking live P&L of millions of customers and then triggering a kill switch automatically that will disallow trading is a risky product. It is risky because it is technologically complex. As a business, we are okay to let go of short-term revenue if it means the customer can do better because then the customer will stick around for the long run and we can potentially recover any short-term revenue outgo.

Thank You for Reply
at least if you can Create the API key for auto Kill Switch Activate, we will create our own Algo software to Disable the Trading after reach defined Day Loss as per the our capabilities.

Ah yeah, this should be possible. Let me speak to the tech team.

@Arockiya_Raja + +

Sir any update on API key for auto kill switch? Please expedite this as it is badly needed to the traders community…We traders are not able to limit the loss, this feature will be a game changer for Zerodha as well as for the traders…please do it…please…I repeat this is badly needed. You will get lot of blessings of the traders sir

Hi @nithin ,

Is there anything can we do about after 3 buy and sell executed orders FNO can we activate the kill switch?
this will helps us to prevent the OVERTRADING and RISK MANAGEMENT

Psychologically fails to hit the kill switch
please help on this

It will reduce the wipe out of capital within one day

This is on our list of things to do. You can set an X number of trades per day, beyond which you can’t place any more orders (other than exit orders) for the day. Some large changes in the backend post which we will introduce many such nudges.

@nithin , thankyou for the response