> For the complete documentation index, see [llms.txt](https://help.hydravision.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.hydravision.ai/ea-configuration/ea-settings/pcl/pcl-de-risking.md).
# PCL De-Risking
Profit Closes Loss, one of the most important sections of configuration in the EA.
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We strongly recommend watching our videos on PCL in order to fully understand how these engines work in relation to the selected PCL strategy. Using these without complete understanding can result in confusion and incorrect configuration.
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### PCL De-Risk Tuning
Dynamic PCL will always run on its default close engine until such time as the thresholds are breached. Once breached, the PCL engine switches to a de-risking mode over-riding the default strategy.
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If the grid is under stress - defined by the trader - then attempt to remove high volume, high risk positions as a priority (the retrace is usually easier to achieve for these positions), based purely on superior VWAP mathematics.
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On **Bounce** and **Multi Trail**, De-Risk is not assessed while the grid is within its strategy thresholds, because the grid is trailing and PCL does not run. It applies once a threshold is breached. See [How the thresholds and PCL De-Risk interact](/ea-configuration/ea-settings/pcl/pcl-strategy-thresholds.md#how-the-thresholds-and-pcl-de-risk-interact).
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In order of priority, the De-Risk assessment runs as follows. A volume blowout is enough on its own. Without a blowout, every one of the remaining checks that applies to your PCL strategy must pass before the grid qualifies for De-Risk.
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### Frontier volume
Has the volume of the Frontier position exceeded the maximum permissible volume as configured in Volume blowout (x startVol)? If this is true then switch to de-risk. All further assessments are ignored. This is the only check that applies to every grid, including fixed grids.
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### Grid Recovery
Has the grid started to recover as defined by Risk Recovery %? As an example if we had 10 open positions at the peak risk assessment with the EA in De-Risk mode, and the market retraced, closing out 2 positions using De-Risk PCL, we would have a 20% recovery. If the recovery threshold has been set at 20%, this would qualify a return to the PCL strategy, and no further assessments are made.
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### Stressed Zone
The grid must be in the Red Zone as defined by your Zone configuration. If it is not, the grid does not qualify for De-Risk.
For the **Bounce** strategy, being in the Red Zone is enough: the grid qualifies for De-Risk and the position and density checks below are skipped.
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### Grid Positions
**Hunter and Multi Trail:** the number of positions in the grid must equal or exceed Min positions for DeRisk.
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### Grid Density
**Hunter and Multi Trail:** the grid density must be above Grid Max Density % (0-100). Only Dynamic grids pass this check. Fixed grids (any Grid Strategy other than Dynamic) never do, so a fixed grid only de-risks on a volume blowout.
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Each PCL strategy targets specific positions in the grid in order to successfully curate its desired outcome. When PCL transitions into de-risk mode, these targets are ignored and a de-risk PCL engine takes over targeting positions classified as high risk to the grid. As a side note on this, the PCL engines operate under race conditions
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Enable PCL De-Risk Engine
`Boolean`
Default: true
Set to true by default. Setting to false will force the PCL engine to use its own default settings permanently.
Volume blowout (x startVol)
`Double`
Default: 5.0
When the Frontier volume is greater than Starting Volume X this value, the PCL engine will transition into a de-risk mode and target positions will be those of highest risk to the grid. This applies to every strategy and every grid type, and overrides all other checks.
Min positions for DeRisk
`Integer`
Default: 8
The minimum number of open positions before de-risk is enabled (Hunter and Multi Trail). Not used by Bounce, and not needed for a volume blowout.
Dynamic grids only: step grids are never de-risked on count and density, so the setting is shown only when the Grid Strategy is Dynamic.
Grid Max Density % (0-100)
`Double`
Default: 70
When using dynamic grids, density of the grids is key to grid health. As a reference point, a fixed grid has a density of 100% over whatever size as every possible position has been filled. In dynamic grids, we get a lot of spacing around positions and density can vary wildly.
This setting (0 up to 100) stipulates that the density should not exceed a certain %. Exceeding the density will enable De-Risking (Hunter and Multi Trail, Dynamic grids only, together with the Red Zone and Min positions for DeRisk checks).
The density measurement is between the Anchor and Frontier position.
Shown only when the Grid Strategy is Dynamic and the PCL Strategy is not Bounce.
Risk Recovery - Min count reduction from peak (as %)
`Double`
Default: 20
Slightly more specialized, and determines if the grid is in recovery mode from its peak. The grid counts as recovering once its position count has fallen by at least X% from the peak count (for example from 10 positions to 8 is 20%). While the grid is recovering, de-risking is disabled unless there is a volume blowout. The setting is intended to avoid over saturating the peaks of grids during consolidation. A value of 0 turns the recovery check off, so a grid is never treated as recovering.
No profit during De-Risk
`Boolean`
Default: false
During de-risking you can set the PCL profit target to 0, effectively ensuring that the grid de-risking process runs as efficiently as possible, with the lowest possible retrace. The 0 target applies for as long as the grid qualifies for De-Risk, so a Bounce grid in the Red Zone has a 0 profit target.