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Risk

Risk management: the limits that matter more than indicators

Indicators decide which signals arrive. Risk decides whether you survive a bad month.

Concurrent positions

A cap on the number of open positions. The point is not convenience but that correlated instruments fall together on a bad day: five positions on currency pairs are often one bet at five times the size.

Signals per day

An upper limit on the stream. It protects attention more than the account: thirty signals a day cannot be considered carefully, and decisions become automatic.

Daily loss limit

The maximum loss for a day, in percent, after which output stops. This rule exists for one purpose: to stop the attempt to win it back. Statistically those are the most costly trades in most people's journals.

In a historical run the limit applies. In live mode it runs into the fact that the service does not know your money: computing it will arrive together with full trade accounting.

Minimum reward-to-risk ratio

Rejects signals where the potential target is closer than the stop. A 1:1 ratio requires a win rate above 50 % merely to break even; at 1:2, 34 % is enough.

The number comes from the execution profile — TP and SL — not from the signal itself: the signal claims a direction, and you set the targets.

Where to start

Set the limits before you start tuning indicators. Risk settings do not improve the statistics of a run — they decide how much you lose when the statistics turn out different from the run.

Updated: 2026-09-10