What is Emergency Close in the decision engine?

Emergency Close is a critical safety feature in MagicTradeBot’s Intelligent Decision-Making Engine that automatically closes trades during extreme market movements to protect your capital. It acts like a “panic button” when market conditions suddenly turn against your positions.

🧠 How It Works

1. Activation

   • Controlled via the EmergencyClose flag in decision_engine.yaml:

EmergencyClose: false   # Set to true to enable automatic emergency trade closure

• When enabled, all trades flagged for emergency closure are automatically closed when the market triggers the emergency conditions.

• Emergency Threshold

  • Defined in market_watch.yaml using AverageMovementEmergencyClose:

AverageMovementEmergencyClose: 0.6  # % opposite movement to trigger emergency close

• Example:

  • Crash scenario: Average movement of tracked symbols drops 0.6% downward, marking all long trades with emergency_close = true
  • Pump scenario: Average movement spikes upward by 0.6%, marking all short trades with emergency_close = true

• Minimum Hold Time

  • To avoid prematurely closing recently opened trades, EmergencyCloseMinHoldTime ensures trades are only closed if they have been open longer than a defined duration:

EmergencyCloseMinHoldTime: 20  # minutes

• Trades younger than this threshold are ignored, preventing unnecessary exits from short-lived volatility immediately after entry.

• Execution Flow

  • Trade is flagged with emergency_close = true when the threshold is met
  • Decision engine checks the trade age
  • If age > EmergencyCloseMinHoldTime, the trade is closed immediately
  • If age < EmergencyCloseMinHoldTime, the trade remains open until the minimum time is reached

🔑 Key Points

• Purpose: Protects your account from rapid market crashes or pumps
• Scope: Can close longs during crashes or shorts during pumps
• Safety Mechanism: Minimum hold time prevents premature exits on recent trades
• Automation: No manual intervention needed; the engine handles emergency closures 24/7

In short, Emergency Close is a proactive risk-management tool that ensures your positions are automatically exited during sharp market reversals, locking in profits or limiting losses without requiring constant monitoring.