GEKISHIN Prospect Defender Free is a volatility-based trading indicator designed to help traders manage risk by counteracting common behavioral biases described by Prospect Theory. It calculates a dynamic "limit of rationality" using a 14-period Exponential Average True Range (ATR) to adapt stop-loss thresholds to current market volatility, identifying when a trade’s original rationale may be invalidated by a "Micro-Structural Break."
The indicator features a minimalist, high-contrast user interface that displays three states: IDLE (no active positions), STABLE (position within rational volatility limits), and ABORT NOW (drawdown exceeds the ATR-based threshold). When the ABORT NOW state triggers, the panel flashes crimson red to alert the trader to consider exiting the position, aiming to overcome emotional hesitation during losses.
Users can customize the reverse limit as a percentage of ATR and adjust the UI scaling and layout to fit multi-monitor setups. The indicator updates its loss/limit ratio every second with non-repainting calculations, providing real-time, lag-free risk status feedback. It does not execute trades automatically but serves as a decision-support tool to promote disciplined trade management across various markets including Forex, indices, commodities, stocks, and cryptocurrencies.