Aurum Trade OS

Risk

Fourteen checks, every one of which can refuse a trade

The rules below are the rules in RiskEngine::check(), in the order they run. The thresholds are the ones this deployment is configured with, read from its settings.

Defaults on this deployment what a new pool inherits
Risk per trade
1.00%
Daily loss limit
2.00%
Max drawdown
10.00%
Max open positions
6
Max correlated
3
Min reward:risk
1.50:1
Max spread multiple
2.50×
Sizing method
fixed fractional

The fourteen, in order

  1. 1
    Master switches

    Engine enabled, pool active, instrument active. Any one off and nothing is evaluated at all.

  2. 2
    Circuit breaker

    A pool that has tripped a breaker refuses new positions until the cool-off expires. Breakers are released at the start of a tick, before evaluation.

  3. 3
    Daily loss

    A pool down more than its daily limit stops opening. Measured against the session baseline, not the calendar day, so a rollover cannot reset it early.

  4. 4
    Drawdown from peak

    Distance from the pool’s own high-water mark. The peak is stored, so a recovery does not quietly lower the bar.

  5. 5
    Open position caps

    A ceiling on concurrent positions per pool. Nothing is opened that would exceed it.

  6. 6
    Duplicate exposure

    A pool already long an instrument will not be made longer by a second signal on the same instrument.

  7. 7
    Correlation

    A cap on how many correlated positions may run together, so a diversified-looking book is not one bet held several times.

  8. 8
    Spread

    A trade is refused when the live spread is a multiple of the instrument’s typical spread — thin books are where slippage lives.

  9. 9
    Reward to risk

    The distance to target against the distance to stop, measured at the price the order would actually fill at, not the price the signal was drawn at.

  10. 10
    Market hours

    Instruments are refused outside their own session.

  11. 11
    Weekend flat rule

    Pools configured to hold nothing over a weekend are flattened before the close and refuse new entries near it.

  12. 12
    News blackout

    A window around high-impact scheduled events during which the instrument is not traded.

  13. 13
    Martingale guard

    Refuses size increases after losses — the failure mode that turns a losing streak into a blown account.

  14. 14
    Free margin

    The order is refused if the margin it requires is not genuinely free after existing positions.

Set your own limits

Every threshold above is per pool. Tighten any of them; none of them can be switched off.