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Risk Management

Core practices​

  1. Set a budget per bot. Define the maximum capital each bot can use so a single bot does not consume the whole portfolio.
  2. Set deal size. Set the Base Order, Safety Order, and number of steps to match your portfolio size.
  3. Set Stop Loss. Use it to limit losses when the price moves against you beyond an acceptable level.
  4. Set Take Profit. Helps deals close in profit by plan, so gains don't easily slip back to zero or a loss.
  5. Control Risk Exposure. See how much capital or risk is currently tied to your deals and bots.
  6. Limit concurrent deals. Reduces the chance that many deals open at once and over-commit capital or push the portfolio beyond plan.
  7. Diversify portfolio risk. Avoid letting many bots concentrate in the same coin or asset group.

What is Risk Exposure?​

Risk Exposure is the value or share of capital currently in use by open trading positions, or tied to bots and deals that are still exposed to market changes.

Key concepts​

Budget per bot​

Setting a maximum budget per bot prevents a single bot from using too much capital and affecting the overall portfolio. This helps you control risk better, especially when several bots run at once. An appropriate budget should consider your portfolio size, the strategy used, and your acceptable risk level.

Budget per asset​

Limiting the total budget that can be used per asset type (e.g. BTC, ETH, or others) prevents the portfolio from concentrating too much in any single asset. Even with many bots or deals, if they all concentrate on the same asset the real portfolio risk remains high. A per-asset budget helps keep the portfolio more balanced.

Using Stop Loss appropriately​

Stop Loss limits losses when the price moves against you to a defined level. Using it appropriately means setting it in line with your strategy, the asset's volatility, and your acceptable risk. If set too tight, deals may close earlier than necessary; if set too wide, damage control becomes less effective. Use Stop Loss as part of a risk plan, not as a fixed value for every deal.

Assessing Drawdown​

Drawdown is the decline in portfolio value or returns from a previous peak. It is used to assess how deeply a portfolio or strategy has fallen during periods when the market or system worked against it. Understanding drawdown helps you judge whether a strategy fits your acceptable risk level — because good profit alone does not always mean the risk is appropriate.

Volatility risk​

Market volatility directly affects trading-bot results. The more an asset swings, the higher the risk of mistimed entries/exits, getting stopped out, or using more capital than expected. The same strategy may produce very different results across assets with different volatility, so do not apply the same settings to every asset without considering market differences.

Leverage risk​

Leverage increases position size beyond your real capital, but also magnifies both profit and loss significantly. Leverage risk is clearly higher than trading without leverage, especially in volatile markets. Used inappropriately, it can damage a portfolio quickly. Use leverage carefully and understand its impact on overall risk before enabling it.

Tips for new users​

New users should start with an appropriate capital size and a clear risk framework. Do not open many bots at once or use others' settings without understanding how the strategy actually works. Trading bots do not automatically reduce risk; they only help the system follow your defined rules more continuously. So before going live, always make sure you clearly understand budget per bot, concurrent deals, Stop Loss, Drawdown, and Risk Exposure.