The "Kill Switch": How MTM Stop-Loss Saves Your Trading Capital from Revenge Trading

In the heat of a volatile trading session, the biggest enemy isn't the market, it’s your own psychology. Many retail traders start the day with a solid plan, but after one or two "stop-loss hunts," frustration kicks in. This often leads to Revenge Trading, where a trader takes larger, riskier positions to recover losses, only to blow their entire account.

TRADO’s MTM (Mark-to-Market) Stop-Loss is the ultimate "Kill Switch" designed to enforce discipline by automating your exit based on your entire portfolio’s performance.

What is Portfolio-Level Risk?

Standard stop-losses are set on individual trades (e.g., "Exit if this option hits ₹50"). However, professional traders manage their risk at the Portfolio Level. They don’t just care about one trade; they care about their Total Daily MTM.

MTM (Mark-to-Market) refers to the real-time value of all your open positions combined. If you have three trades running, your MTM tells you exactly how much you are up or down at that microsecond.

The Power of the MTM Kill Switch

In the TRADO terminal (visible at the bottom of the dashboard), you have dedicated fields for MTM TGT (Target) and MTM SL (Stop-Loss).

1. MTM Stop-Loss (The Capital Protector)

Imagine your total capital is ₹1,00,000. You decide that you cannot afford to lose more than ₹2,000 in a single day.

• The Manual Way: You try to keep track of four different positions and manually exit them one by one as your losses mount. By the time you square off, your ₹2,000 loss has become ₹5,000 due to slippage and emotional hesitation.

• The TRADO Way: You set your MTM SL to -₹2,000. The moment your combined P&L hits that number, the TRADO execution engine fires square-off orders for every single open position instantly. Your day is done, and your capital is safe for tomorrow.

2. MTM Target (The Greed Enforcer)

Just as fear keeps traders in losing trades, greed prevents them from taking profits. If your daily goal is ₹5,000, you can set an MTM TGT at that level. The terminal will "lock in" your day the moment your goal is reached, preventing you from overtrading and giving back your hard-earned gains.

MTM Trailing: The Professional’s Profit Lock

Standard trailing stops move with a single stock price. TRADO takes this to the next level with Auto-Trailing MTM.

• The Setup: You are up ₹10,000 for the day. You set an MTM Trail with a ₹2,000 "Step".

• The Movement: If your profit climbs to ₹12,000, your "Guaranteed Exit" moves up to ₹8,000.

• The Result: If the market suddenly crashes and your profit drops to ₹8,000, TRADO exits everything. You never let a "Big Green Day" turn into a "Red Day".

Why TRADO is Mandatory for Intraday Discipline

For retail traders in India, TRADO is one of the fastest broker access terminals that offers this level of automated risk control. By using MTM-based targets and stop-losses, you remove the "Human Error" from risk management.

• Zero Hesitation: No more "waiting for a bounce" that never comes.

• Portfolio Clarity: See your total risk in a single number.

• Emotional Immunity: Your exit is a rule, not a choice.

Conclusion: Trade Like a Business, Not a Gambler

Successful trading is 10% strategy and 90% risk management. By utilizing the MTM Risk Dashboard in TRADO, you stop being a victim of market volatility and start being a manager of your own capital.