What is AverageMovementEmergencyClose?

AverageMovementEmergencyClose defines the opposite market movement percentage that triggers an emergency close of open positions.

It is a defensive setting designed to protect your trades when the market suddenly reverses sharply against your position.

Example:

AverageMovementEmergencyClose: 0.6

This means:

• If a crash is detected → long positions may be closed.
• If a pump is detected → short positions may be closed.
• Only when the opposite movement reaches the defined percentage.

🛡️ What Problem Does It Solve?

Crypto markets often:

• Pump aggressively
• Reverse suddenly
• Crash after breakout failures

Without protection, a fast reversal can:

• Erase unrealized profits
• Deepen drawdowns
• Increase liquidation risk (especially with leverage)

This setting ensures your bot reacts quickly when volatility turns against your direction.

⚙️ How It Works Internally

The emergency close logic follows a structured process:

Step 1 — Opposite Volatility Detected

If the emergency threshold is met (for example, a crash event while you hold longs):

• All running Long positions are marked internally with:

  emergency_close = true
  

If a pump event occurs:

• All running Short positions receive the same flag.

No immediate closing happens at this stage — only the flag is applied.

Step 2 — Decision Engine Validation

The Decision Making Brain then evaluates each flagged trade:

The trade will close if:

• The trade age is older than the minimum required hold time OR
• The emergency close override option is enabled (allowing instant close)

This ensures:

• No premature exits due to noise
• Smart filtering before forced closing
• Controlled execution instead of panic selling

📉 Example Scenario

You are holding a Long position.

Market conditions:

• Sudden crash detected
• Average downward movement exceeds 0.6%
• Your long trade is flagged

If emergency close conditions are satisfied:

→ The trade closes automatically → Capital is protected → Drawdown is reduced

🎯 Why Recommended Value Is Half of Alert Threshold

It is recommended that:

AverageMovementEmergencyClose ≈ 50% of AverageMovementPercent

Example:

AverageMovementPercent: 1.2
AverageMovementEmergencyClose: 0.6

Reason:

• Alerts detect larger volatility
• Emergency close reacts earlier
• Trades exit near the early phase of reversals
• Losses are minimized before full crash expansion

This creates a proactive protection system instead of reactive damage control.

📊 Strategic Impact

This setting is especially important when:

• Using leverage
• Running DCA strategies
• Trading volatile altcoins
• Operating unattended

It dramatically reduces the risk of:

• Deep drawdowns
• Emotional decision delays
• Catastrophic reversals

🚀 Summary

AverageMovementEmergencyClose defines the opposite movement percentage that triggers emergency position closures.

It:

• Flags trades when market reverses sharply
• Works with the Decision Making Brain for safe execution
• Protects against sudden pumps or crashes
• Should typically be set at half the alert threshold

It is your automated emergency brake during extreme volatility.