Auto flatten
An automated trigger that closes all open positions and cancels working orders when a defined risk condition fires.
Auto flatten is the kill-switch for an account. When configured, it watches a risk metric — typically a safety buffer on daily loss or trailing drawdown — and submits a flatten request the moment the condition trips. Open positions are closed and working orders cancelled.
Auto flatten is opt-in for good reason: it can slip in fast markets, reject due to broker issues, or fire on a metric that the trader didn't anticipate. It's a safety net, not a guarantee. Use it once you trust the configuration in Sim and after testing the trigger conditions on Replay.
Example
- Drawdown Guardian's Auto Flatten setting fires when account equity drops within 20% of the daily loss limit. Open positions close at market; working orders cancel.
Related terms
- Daily closeout
A time-based trigger that flattens the account and disables trading at a configured Eastern Time each day.
- Order Lock
A one-click trading-lockout that disables order entry until the next session — designed to prevent revenge trades after a triggering event.
- Drawdown buffer (safety buffer)
A self-imposed limit inside the firm's actual limit — your guardrail before the firm's guardrail.