Risk Controls Every Automated System Should Have
Lot sizing, exposure caps, session filters and drawdown limits — the controls that keep automation disciplined.
Risk control is not a feature you add at the end; it is the frame the strategy runs inside. At minimum, an automated system should express position size as a function of account equity rather than a fixed lot.
Exposure caps prevent correlated positions from compounding a single directional bet. Session filters keep the system out of thin liquidity windows where spreads widen. Drawdown limits stop trading when the account crosses a threshold you defined in advance.
Document every limit and test what happens when each one is triggered. An untested safety mechanism is not a safety mechanism.
This article is educational content, not investment advice. Trading carries substantial risk of loss.