· Risk · 1 min read
Risk Management in Algorithmic Trading
Why robust risk controls are the most critical component of any automated trading system.
Defense First
In algorithmic trading, preserving capital is paramount. A single bug can wipe out years of profits in minutes.
Automated Circuit Breakers
Our systems implement multi-layered kill switches:
- Order Size Limits: Preventing “fat finger” errors.
- Position Limits: Controlling exposure to single assets.
- P&L Drawdown Stops: Halting trading if losses exceed thresholds.
Robust risk management is what separates enduring firms from flash-in-the-pan successes.
