CoTrading DocsRisk Controls
Deterministic daily-loss circuit breaker, cooldowns, and position caps — enforced locally, not by an LLM.
Risk Controls
CoTrading's risk controls are deterministic. They run as pure functions on your machine and never pass through an LLM. Given the same account state, they always produce the same decision — no randomness, no model judgment.
Daily-loss circuit breaker
When your realized loss for the day reaches a configured threshold, the circuit breaker trips and blocks new risk-increasing orders for the rest of the session. This caps how bad a single day can get.
Cooldown after consecutive losses
After a run of consecutive losing trades, CoTrading enforces a cooldown period before you can open new positions. This interrupts tilt and revenge-trading patterns.
Position caps
- Per-trade cap — a single trade cannot exceed a configured size.
- Per-account cap — total exposure across positions is bounded.
Closing orders are exempt
You can always reduce risk
Orders that close or reduce an existing position are exempt from the circuit breaker. Even when the breaker has tripped, you can still exit a position — the controls only restrict adding risk, never removing it.
Why deterministic matters
Because these checks are pure functions executed locally, they are predictable and auditable. They do not depend on model output, prompt phrasing, or network conditions. Whether an order is proposed by the AI or entered manually, it must satisfy the same rules.
Next steps
- AI Approval Trading — how approved plans meet these limits.
- Live Trading — how risk controls apply to real funds.