๐ก๏ธ New "Layered Shield" Security Concept in the Forex Market
Traditional automated forex trading often carries risks beyond market volatility, including trust, operational, and technical risks. The new "Layered Shield" Security Concept is designed to minimize these non-trading risks and ensure maximum transparency and control for investors.
The Essence of the "Layered Shield" Concept
"Layered Shield" is an integrated approach where investment security is ensured not by a single factor, but by three independent levels of control operating simultaneously.
Level 1: Capital Segregation (Custody Shield)
This level eliminates the main trust risk - the risk of fraud and unauthorized access to funds.
Principle: The investor's capital always remains in their personal trading account with a regulated broker.
Functionality: The trading robot (or management system) only has access to execute trades (trading operations), but does not have the right to withdraw funds (Non-Withdrawable Access).
Result: Withdrawals are only possible by the investor personally. The system cannot "lose" or "steal" funds, as it does not store them.
Level 2: External Risk Management Protocol (Monitoring Shield)
This level protects against technical errors or failures of the trading algorithm itself, as well as against excessive drawdown.
Principle: Implementation of an independent "Watchdog" service at the broker level or via an API interface that operates in parallel with the trading robot.
Functionality: The service sets strict, non-revisable limits (Circuit Breakers) on the maximum daily and total drawdown. If the robot approaches the set limits, the "Watchdog" service automatically disables trading or forcibly closes all positions.
Result: An algorithmic error cannot lead to a complete loss of the deposit; the risk is limited to a predetermined level acceptable to the investor.
Level 3: Audit and Verification (Verification Shield)
This level ensures full transparency and accountability of results.
Principle: All trading operations and historical data are automatically verified by an independent external platform.
Functionality: Use of public monitoring services, such as Myfxbook or similar, which provide immutable reports on profitability, drawdown, and trading activity. These reports cannot be faked or edited.
Result: Investors can check the actual performance of the system at any time and verify the authenticity of the stated results, increasing trust and transparency.
๐ Main Advantage
The "Layered Shield" concept shifts key risk management from the developer or manager to the investor, transforming passive income into controllable passive income. This is a new security standard, where technical reliability is complemented by transparent financial accountability.