RISK MANAGEMENT TOOLS IN ALGOFOX

 Every algo-trader needs a proper risk management system to ensure the algorithms do not misbehave and cause huge losses. 

To ensure this, we have carefully designed important parameters which will allow users to decide risk for any algo that they wish to run without making any changes in their code. Here are the risk management options available in Algofox : 

 1. Max open position : User can decide per strategy how many position should be open at any given time. 

For example : If a user is running 2 strategies PRO1 and PRO2 and wants to ensure that at any point of time only 2 positions are to be open from PRO1 and 3 positions from PRO2, he/she can set this value as MAX OPEN POSITION = 2 for PRO1 and 3 for PRO2. This will ensure that at any point only those many positions will be open as desired by the user. This can help greatly to manage risks and fund deployment.

 2. Max Long position : If a user is biased about market and wants to ensure that long positions for that day should not cross a particular value, they can set it here. 

Example : If a user sets Max long position = 2 for PRO1, then in entire day only 2 bullish trades (Buy) positions will be taken and others will be ignored. 

3. Max Short position : : If a user is biased about market and wants to ensure that short positions for that day should not cross a particular value, they can set it here.

 Example : If a user sets Max short position = 2 for PRO1, then in entire day only 2 bearish trades (Short) positions will be taken and others will be ignored.

 4. Max trades per day : If a user wants to restrict the number of trades from a particular algo, they can set it here. 

Example : If Max trades per day = 2 for PRO1, then from 3^rd trade onwards all the trades will be ignored. 

(Note: Algofox trade rules are smart, that means in the above example, if first or 2^nd order is rejected by your broker it won’t count and in that case we will take 3^rd trade to execute and when 2 trades are completely executed only then the upcoming trades will be ignored) 

 5. Max orders per day : If a user wants to ensure that algo should not fire orders above a particular number, it can be defined here. 

Example : If a user defines Max order per day = 4, then for that particular day only 4 orders will be taken by Algofox and remaining will be ignored. 

(Note : Trades and orders are two different concepts, in trade we count only when trade is executed, in order irrespective of whether it is rejected or executed it will count as order. Also it is advised to keep this value as even value as we need 2 orders to complete a trade Buy-sell or Short-cover pair and if you keep this number as odd, chances are that your exit for some position will be ignored) 

6. Max trades per script : If a user has a algorithm that gives multiple signal in rangebound market or he/she wants to restrict max trades taken in each individual script, it can be mentioned here. 

Example : If a user sets max trades per script = 1, then for that day only 1 trade per script will be executed, and other signals in same script will be ignored. 

(Note: Algofox smart risk management ensures the rules apply only after trades are executed, in above example, if first trade was rejected by broker, then algofox will allow trade in that script again till broker completes the trade and then ignore the other upcoming signals) 

 7. Quantity Multiplier : If you have a watchlist with specific quantity of shares/ lots and want to double or multiply your quantity/lots instead of changing the entire watchlist you can directly change the quantity multiplier. 

Example : If quantity multiplier is 3, then all incoming signals will be executed in 3x quantity automatically. 

 Trade carefully and use Risk management features to the fullest to ensure your capital is always safe and secure.

 Algofox is not liable for any losses due to any technical failure or non working of any RMS Setting.