Risk Settings

Risk controls

Risk settings should be explicit before testing. They help historical reports show what assumptions were used.

Common settings

Setting	Purpose
Position size	Controls exposure per trade.
Stop rule	Defines invalidation or exit logic.
Daily loss limit	Limits repeated loss scenarios.
Max trades	Controls turnover and costs.
Segment limits	Keeps instruments and derivatives explicit.

Not protective by itself

Risk settings do not remove market risk. They are assumptions and runtime rules the user must review.