AutoTrade Risk Management
All risk controls in AutoTrade are system-managed and fixed. They cannot be adjusted by users. This design is intentional — consistent risk parameters ensure that the system behaves predictably and prevents accidental over-exposure.
How Risk Filtering Works
Every trade signal passes through an 11-layer filter before any order is placed. If a signal fails any layer, it is discarded — no order is sent to the exchange.
| Layer | Check | Purpose |
|---|---|---|
| 1 | Manual pause switch | Operator-level kill switch |
| 2 | Circuit breaker state | Daily loss limit already triggered |
| 3 | HOLD signal | Consensus model says hold position |
| 4 | Minimum confidence | Signal not strong enough |
| 5 | Daily loss limit | Stop trading if account down > 5% today |
| 6 | Consecutive losses | Pause after 3 consecutive losing trades |
| 7 | Stop-loss direction | SL must be on the correct side of entry |
| 8 | Stop-loss magnitude | SL cannot exceed maximum allowed distance |
| 9 | Take-profit magnitude | TP cannot exceed maximum allowed distance |
| 10 | Risk/reward ratio | TP ÷ SL must meet minimum ratio |
| 11 | Open position check | Same strategy cannot open a duplicate position |
Global Risk Parameters
These apply to all strategies:
| Parameter | Value | Description |
|---|---|---|
| Minimum confidence | 70% | Signal must meet this threshold before filtering |
| Max position size | 10% of balance | Single trade cannot use more than 10% of futures balance |
| Daily loss limit | 5% | Circuit breaker triggers if daily drawdown exceeds 5% |
| Max stop loss | 8% from entry | Hard cap on how far SL can be placed |
| Max take profit | 12% from entry | Hard cap on TP distance |
| Min risk/reward | 1.5× | TP must be at least 1.5× the SL distance |
| Leverage | 1× (no leverage) | All positions are opened without leverage |
Per-Strategy Risk Parameters
Each strategy has its own tighter risk envelope on top of the global limits:
| Mean Reversion | Breakout | Funding Rate | |
|---|---|---|---|
| Min confidence | 65% | 70% | 65% |
| Max stop loss | 5% | 6% | 5% |
| Max take profit | 8% | 12% | 8% |
| Min risk/reward | 1.0× | 2.0× | 1.5× |
Trend Following uses the global parameters directly (70% / 8% / 12% / 1.5×).
Circuit Breaker
If the account's daily realized loss exceeds 5%, the circuit breaker activates:
- All new signals are rejected for the rest of the trading day
- Existing open positions continue to be managed (trailing stop, take-profit still active)
- The breaker resets automatically at the start of the next trading day
Additionally, if 3 consecutive trades close at a loss, trading is paused until the next strategy scan cycle completes a clean analysis.
Trailing Stop
Once a position moves in your favor, the system automatically manages it to lock in profit:
| Stage | Trigger | Action |
|---|---|---|
| Break-even move | Position up 2% | Stop loss moves to entry price (no-loss protection) |
| Trailing start | Position up 3% | Trailing stop activates |
| Trailing distance | — | Stop trails 2% behind current price |
This means a trade that reaches +3% profit will never close below breakeven, and gains above 3% are partially protected as the market continues to move.
Why Parameters Are Fixed
Allowing per-user parameter adjustment would introduce several risks:
- Misconfiguration risk — incorrect SL/TP values can lead to runaway losses
- Strategy interference — changing one parameter can invalidate assumptions built into the signal model
- Inconsistent fan-out — if parameters differ between accounts, trade outcomes diverge in unpredictable ways
The system is designed as a signal-to-execution pipeline where risk is controlled at the infrastructure level, not at the user level.
For details on how each strategy generates signals, see the Strategy Guide.