Risk Management
Trading is not about being right 100% of the time—it's about surviving long enough to let your edge play out. TradingWizard's AI embeds advanced capital preservation models directly into every bot scan.
The 1% Rule
The golden rule of professional trading is to never risk more than 1-2% of your total capital on a single trade. When you configure your Risk Profile (Conservative, Moderate, Aggressive) in Settings, you are telling the Bot Engine how wide to place its dynamic stop-losses.
Dynamic Stop Losses
1. ATR-Based Stops
Instead of arbitrarily picking a 5% stop, the AI uses the Average True Range (ATR) of the asset. If the market is highly volatile, the stop-loss widens to prevent you from being "wicked out" prematurely.
2. Market Structure Validation
Stops are dynamically placed just below major support zones or recent swing lows, ensuring that if your stop is hit, the core thesis of the trade is actually invalidated.
Macro Filters (System Intelligence)
If the broader market (e.g., S&P 500, Bitcoin Total Market Cap) is dumping violently, the AI knows not to fire off a bunch of long/buy signals for altcoins or tech stocks.
High Volatility Warning
During massive macroeconomic events (CPI prints, FOMC rate hikes), the Bot Engine automatically degrades its own confidence scores to enforce a "sit on hands" mentality. This prevents your webhook connections from buying into pure chop.
Ready to Start?
Head back to the dashboard and configure your profile to start receiving signals.