Risk Controls First
Guardrails That Prevent One Bad Trade
Risk controls include max position size, daily loss limits and rule-level cooldowns to avoid overtrading. Add a trailing take profit that activates after +4% and trails by 1.2% to lock gains during fast moves. You can also require volume confirmation, like only buying when volume is 20% above the 20-period average. These constraints help keep execution consistent when volatility spikes.
Transparent Execution
Every action is recorded with timestamps, conditions met and the exact order sent, so you can audit behavior and iterate. Use paper-style testing with small sizes first, then scale once results match expectations. For more on systematic setups, see /automated-trading.
Build Bot