Risk management rules - Pre-defined guidelines that control risk per trade and overall. These include position sizing, stop-loss placement, and maximum drawdown limits. For example, an EA may calculate lot size using a fixed percentage of account equity or volatility (via
AccountBalance() and
SymbolInfoDouble()) so that each trade risks only X% of capital. It will then set
StopLoss and
TakeProfit parameters on orders (e.g. in
ExecuteMarketOrder(TradeType.Buy, SymbolName, vol, “label”, stopLoss, takeProfit)). cTrader cBots handle risk via similar parameters in
ExecuteMarketOrder or
PlaceStopOrder. A systematic Python bot might adjust position size or skip signals if the risk threshold is hit. Risk management is about keeping consistency – Pepperstone emphasizes having a trading plan with entry/exit and position-size rules to control losses. Automated risk rules help prevent over-leveraging: e.g. a cBot might
if(Symbol.Bid - position.EntryPrice > maxStop) ClosePosition(position); to enforce a loss cap. In short, risk rules ensure the robot never violates the trader’s risk tolerance (e.g. no more than 1–2% equity risk per trade).
