The Psychology of the Kill Switch

Every trader, from novice to veteran, faces the same enemy: Revenge Trading. It happens when you take a large loss and immediately try to win it back by increasing your position size.

The logical brain shuts off, and the emotional brain (amygdala) takes over. In this state, your trading plan goes out the window.

Why Willpower Fails

Relying on willpower to stop trading after a big loss is a losing strategy. Willpower is a finite resource. After hours of staring at screens, your decision-making fatigue sets in.

This is why we built the Dhan Kill Switch. It's an external enforcement mechanism. Once you hit your max daily loss (e.g., -₹5,000), the software hard-locks your account.

How it Works Technically

We use the Dhan API to continuously poll your P&L (Profit and Loss). This loop runs every 1 second.

if current_pnl <= -5000:
    1. Cancel all open orders
    2. Close all open positions (Market Order)
    3. Revoke API Token (rendering the terminal useless)
    4. Send Telegram Alert: "Kill Switch Activated. Go for a walk."

By revoking the token or changing the password automatically, we create significant friction. By the time you reset your password to log back in, the emotional impulse has likely faded.

The Result

Our data shows that traders who use an automated Kill Switch survive 3x longer in the markets than those who don't. It turns a bad day into just a bad day, instead of a career-ending day.