Layer risk controls without mistaking them for guarantees.

Start with position sizing

Sizing determines how much capital a single decision can expose. Confirm whether the strategy uses a percentage or fixed value, whether that value applies per market, and how many positions can open together. In Margin mode, multiply by leverage to understand notional exposure.

Stop loss

A stop loss requests an exit after the configured adverse movement. It can limit loss under normal conditions, but the final execution price can differ because of gaps, slippage, liquidity, exchange availability, and order rejection.

• Define the reference price and percentage explicitly.
• Test whether the stop is too close for normal volatility.
• Review how fees and leverage affect the effective loss.
• Confirm the order status rather than assuming the exit filled.

Trailing exit

A trailing exit follows favorable movement and triggers after price retreats by the configured distance. The legacy Preserve Profits behavior maps to the current trailing-exit format when compatible legacy strategies are restored.

A tight trail can exit during normal noise; a wide trail can return a large part of an unrealized gain. Backtest multiple volatility regimes.

Drawdown and open exposure

Maximum drawdown is the largest peak-to-trough decline in equity. The calculation must include unrealized open-position PnL to describe current risk. A strategy that deployed most of its capital into losing open positions can have severe drawdown even before any position closes.

Use a layered checklist

1. Limit per-position value.
2. Limit combined open exposure and simultaneous positions.
3. Reserve balance for fees and unexpected execution conditions.
4. Use strategy exits and exchange-side protections where supported.
5. Run simulation and monitor new candle evaluations.
6. Maintain a manual emergency path at the exchange.