Risk management cannot guarantee safety, but it can prevent known classes of mistake. ThorAlpha currently enforces cash, order-size, and concentration checks before a paper fill.
Use several control layers
Per-order limits reduce accidental size. Concentration limits reduce single-asset dependence. Exit and pause conditions govern the strategy after entry.
Measure risk in the same units as the decision
Connect exposure, drawdown, and volatility to the amount of simulated capital actually at risk.
Paper action
Write the maximum order, position concentration, and strategy invalidation condition before testing return.
Write the maximum order, position concentration, and strategy invalidation condition before testing return.