Churning Control

General Information

This trigger is designed to identify churning, a practice where excessive trading volumes are generated on a trader's account primarily to produce commissions, rather than to meet investment objectives. This activity typically does not result in a significant PnL (Profit and Loss) change.

Once an account is detected frequently buying and selling large volumes with minimal impact on the trader's investment performance, the trigger generates a notification.

Menu Navigation

You can find the Churning Control trigger under:
Risk Management → Event Triggers

Edit Settings

Parameter Name	Description
Only with agent IDs	The trigger will ignore accounts without an agent ID.
Depth of trade history, days	The time period (in days) of an account's trade history that will be analyzed by the trigger.
Minimum trade orders	The minimum number of orders placed over the specified time period required for further account analysis.
Minimum volume, USD	The minimum total trading volume in USD required for an account to be analyzed.
Ratio between volume and PnL	The ratio of the account's total trading volume (USD) to the account's PnL (USD) during the current trading session. If the ratio exceeds the specified value, a notification will be generated.
Excluded Account Groups	Account groups that are excluded from monitoring.
Excluded Accounts	Specific accounts that are excluded from monitoring.

Permissions

MT4	MT5
No specific permissions required.	No specific permissions required.

Trigger Logic

The trigger operates based on one parameter and three thresholds that need to be configured:

1. Depth of Analysis

• The depth of account trading history to be analyzed, measured in days.

2. Three Thresholds for Analysis

• Minimum number of orders placed over the specified time period.
• Minimum total volume of these orders in USD.
• Ratio of PnL to total volume (if this ratio exceeds the specified value, a notification is generated).

Process Workflow:

• If the account does not meet one of the first two thresholds (minimum orders or minimum volume), the analysis stops.
• If the account meets both threshold values, the trigger calculates PnL from the orders placed during the period and compares it to the total trading volume (USD).
• If the PnL-to-volume ratio exceeds the third threshold, a notification is generated.