Risk Management
Multi-layered protection system that prevents catastrophic losses while maximizing edge extraction.
Kill Switch
Automatically halts all trading when daily loss exceeds the configured cap. Prevents catastrophic drawdowns during black swan events or strategy failure.
Dynamic Position Sizing
Scales position size proportionally to signal confidence. Higher confidence = larger allocation, capped at MAX_POSITION_SIZE. Prevents oversized bets on weak signals.
Take Profit / Stop Loss
Every trade has pre-computed TP and SL levels based on entry price and configured percentages. Exits are automatic — no emotional decision-making.
Window Timing Rules
Restricts trading to optimal market hours when liquidity is highest and spreads are tightest. Avoids low-volume periods where slippage erodes edge.
| Signal Confidence | Allocation % | Risk Level |
|---|---|---|
| 90–100% | 5.0% | Maximum |
| 70–89% | 3.5% | High |
| 50–69% | 2.0% | Medium |
| 30–49% | 1.0% | Low |
| <30% | Skip | No Trade |
Capital Preservation First
The kill switch and daily loss cap ensure that no single bad day can wipe out accumulated gains. The bot is designed to survive drawdowns, not just maximize returns. A 50% loss requires a 100% gain to recover.
Edge Compounding
By sizing positions proportionally to confidence, the bot naturally compounds its edge. High-confidence signals get larger allocations, while marginal signals get minimal exposure. Over hundreds of trades, this asymmetry compounds significantly.