Risk Guard Protocol/
Progressive Profit Factor System
TL;DR
The Progressive Profit Factor (PPF) System is LiquidMind's adaptive risk engine. Instead of risking the same fixed percentage on every trade, the system continuously evaluates its own recent performance across the last 20 closed positions and dynamically scales position size up or down. The result: risk automatically shrinks during losing streaks and expands during winning phases — without any manual intervention.
Grade → Risk Multiplier Overview
Step 01
Rolling 20-Trade Window
The system queries the last 20 closed positions ordered by closed_at DESC. Only positions with a real PnL and a valid SL distance are included. Open, cancelled, or positions lacking SL data are ignored.
| Grade | PF Score Range | Multiplier | Effective Risk (base 1%) | System Behaviour |
|---|---|---|---|---|
| A+ | ≥ 1.75 | ×2.5 | 2.5% | Outstanding – scale up aggressively |
| A | 1.40 – 1.74 | ×2.0 | 2.0% | Very strong – full green flag |
| B | 1.10 – 1.39 | ×1.4 | 1.4% | Solid – slight boost |
| C | 0.85 – 1.09 | ×1.0 | 1.0% | Baseline – trade at base risk |
| D | 0.60 – 0.84 | ×0.6 | 0.6% | Weak – reduce size |
| E | < 0.59 | ×0.3 | 0.3% | Critical – minimum exposure |
PF Score
0.990
55% WR × 1.80 R:R
System Grade
C
×1.0 multiplier
Baseline – trade at base risk
Effective Risk
1.000%
1% base × 1x = 1.000% actual
The database function `calculate_ppf_multiplier(user_id)` queries the `closed_orders` table, retrieves the last 20 closed positions ordered by `closed_at DESC`, computes win_rate and avg_rr, multiplies them into the PF score, and maps the result to the appropriate grade. The multiplier is then applied to `risk_per_trade` inside `calculate_position_size()` before the position quantity is sent to the exchange. This means your actual risk exposure changes after every single closed trade — seamlessly and without any action required from you.