Risk limits

Execution-time enforcement

VarianTrade enforces strict risk parameters directly on the execution path. Unlike advisor alerts that warn you after a breach, the platform validates all risk parameters before an order is generated and transmitted to MetaTrader 5.

If any proposed trade violates a configured threshold, the order is blocked at the system boundary. This check prevents fat-finger errors, excessive position sizing, and trading during periods of high drawdown.

User risk profile fields

Your risk profile consists of several parameter fields that define your execution boundaries. You can view these fields using /profile and modify them via the /settings subcommands:

Parameter Field	Default Value	Description
max_position_size_percent	10.0%	The maximum percentage of account equity allocated to a single trade. Used to compute order quantity.
max_daily_drawdown_percent	5.0%	The maximum allowed daily loss (realised and unrealised) as a percentage of starting equity. If breached, further trading is suspended for the day.
max_open_positions	10	The maximum number of concurrent open positions. New signals are blocked if this count is reached.
default_stop_loss_percent	2.0%	The default stop-loss percentage applied to any trade if the originating signal does not specify a stop-loss price.
default_take_profit_percent	5.0%	The default take-profit percentage applied if the signal does not specify a target exit.
risk_level	“moderate”	General risk intensity level (conservative, moderate/balanced, aggressive) that influences sizing calculations.
auto_close_on_loss	True	Boolean toggle. When enabled, the system automatically triggers a market order to close a position when it hits its designated loss threshold.
enable_risk_monitoring	True	Boolean toggle. Enables continuous, real-time monitoring of open positions to detect drawdown limit breaches.

Sizing and allocation controls

In addition to the core risk profile fields, auto-trading settings introduce controls to partition your account equity:

• Trading allocation percentage: By default, this is set to 100.0%, meaning the system sizes positions against your entire broker balance. You can reduce this percentage to hold a portion of your capital in cash, making it invisible to the position-sizing engine.
• Sizing mode: You can choose between risk_based sizing (sizing based on a fixed percentage of your allocation) or kelly sizing (sizing derived dynamically from your live trade history using the fractional Kelly criterion, falling back to risk-based sizing if you do not have sufficient historical trade data).