Risk starts with position size
Even a good strategy becomes dangerous if position size does not fit the account. Stop risk should be clear in money and percent before launch.
Leverage does not improve a strategy. It increases sensitivity to mistakes, slippage, and sharp market moves.
A stop must exist before entry
Stop logic should be part of the launch. If a strategy enters a position, protection must be placed immediately.
For an algorithmic terminal, both stop placement and later reconciliation of position and protective orders matter.
Daily drawdown protects against error streaks
A series of weak launches can damage the period quickly. A daily drawdown limit helps stop before emotional decisions.
Limits do not block growth; they define the boundaries where the strategy remains manageable.