Risk Profiles

Understanding and choosing the right risk profile for your situation.

Overview

The Strategy Engine supports three risk profiles that control position sizing, spread thresholds, and diversification.

Conservative

Best for: Capital preservation, new users, large accounts.

engine.setProfile({ riskProfile: 'conservative' });

Setting	Value
Max position size	20% of capital
Min spread	0.05%
Max concurrent positions	3
Stop loss	1%

Behavior:

• Only takes high-confidence opportunities
• Smaller position sizes
• Prioritizes capital preservation
• Lower expected returns, lower risk

Moderate (Default)

Best for: Most users, balanced approach.

engine.setProfile({ riskProfile: 'moderate' });

Setting	Value
Max position size	30% of capital
Min spread	0.03%
Max concurrent positions	5
Stop loss	2%

Behavior:

• Balanced risk/reward
• Medium position sizes
• Good diversification
• Suitable for most market conditions

Aggressive

Best for: Experienced users, small accounts seeking growth.

engine.setProfile({ riskProfile: 'aggressive' });

Setting	Value
Max position size	50% of capital
Min spread	0.01%
Max concurrent positions	10
Stop loss	3%

Behavior:

• Maximizes capital deployment
• Takes more opportunities
• Higher potential returns
• Higher risk of drawdowns

Comparison

Aspect	Conservative	Moderate	Aggressive
Expected daily return	0.3-0.5%	0.5-1.0%	1.0-2.0%
Max drawdown risk	2-3%	5-7%	10-15%
Opportunities taken	Few	Some	Many
Best market	Any	Normal	High volatility

Custom Profiles

Create your own profile:

engine.setProfile({
  riskProfile: 'moderate', // Base
  // Override specific settings
  maxPositionSize: 25,
  minSpread: 0.04,
  maxOpenPositions: 4
});

Recommendations

1. Start conservative - Learn the system before increasing risk
2. Match to capital - Smaller accounts may need aggressive to see returns
3. Adjust to market - Lower risk in uncertain conditions
4. Never risk more than you can lose - This is real money