Risk Management¶

PolyBot includes comprehensive risk management controls to protect your capital.

Risk Limits¶

Position Limits¶

# Maximum size for any single position
MAX_POSITION_SIZE_USD=1000

# Maximum number of open orders
MAX_OPEN_ORDERS=50

Exposure Limits¶

# Maximum total capital at risk
MAX_TOTAL_EXPOSURE_USD=10000

# Maximum exposure per venue
RISK_MAX_VENUE_EXPOSURE_USD=5000

# Maximum concentration in one venue
RISK_MAX_VENUE_CONCENTRATION=0.7

Loss Limits¶

# Stop trading after this daily loss
DAILY_LOSS_LIMIT_USD=500

How Limits Work¶

Pre-Trade Checks¶

Before every trade, PolyBot checks:

Position size - Is order within limits?
Total exposure - Will this exceed max exposure?
Daily P&L - Have we hit loss limit?
Open orders - Are we at max orders?

If any check fails, the signal is rejected.

Real-Time Monitoring¶

The executor service continuously monitors:

Current exposure across all positions
Unrealized P&L
Daily realized P&L
Per-venue concentration

Risk Dashboard¶

View risk metrics in the dashboard:

http://localhost:8000/ui

Or via CLI:

polybot risk status

Shows: - Current exposure vs limits - P&L for the day - Position breakdown by strategy - Alerts and warnings

Per-Strategy Limits¶

Each strategy has its own limits:

class MyStrategy(BaseStrategy):
    def _get_config(self) -> StrategyConfig:
        return StrategyConfig(
            max_position_size=100.0,  # USD
            max_positions=5,           # count
        )

Delta Management¶

For multi-venue trading:

# Maximum net delta (directional exposure)
RISK_MAX_DELTA=500

# Trigger auto-hedge at this delta
RISK_HEDGE_DELTA_THRESHOLD=100

# Enable automatic hedging
RISK_AUTO_HEDGE_ENABLED=false

Alerts¶

PolyBot generates alerts when:

Exposure exceeds 80% of limit
Daily loss exceeds 50% of limit
Position concentration too high
Unusual activity detected

View alerts:

polybot alerts list

Best Practices¶

Starting Out¶

Use conservative limits - Start small
Enable shadow mode - Test without real risk
Monitor actively - Watch the dashboard
Review daily - Check P&L and positions

Scaling Up¶

Increase gradually - 20-50% at a time
Track metrics - Win rate, average P&L
Adjust per strategy - Different strategies, different limits
Keep reserves - Don't deploy 100% of capital

Emergency Procedures¶

If something goes wrong:

# Disable all strategies immediately
polybot strategy disable --all

# Cancel all open orders
polybot orders cancel --all

# Check positions
polybot positions

# Review recent activity
polybot logs --tail 100

Configuration Examples¶

Conservative¶

MAX_POSITION_SIZE_USD=100
MAX_TOTAL_EXPOSURE_USD=1000
DAILY_LOSS_LIMIT_USD=50

Moderate¶

MAX_POSITION_SIZE_USD=500
MAX_TOTAL_EXPOSURE_USD=5000
DAILY_LOSS_LIMIT_USD=250

Aggressive¶

MAX_POSITION_SIZE_USD=2000
MAX_TOTAL_EXPOSURE_USD=20000
DAILY_LOSS_LIMIT_USD=1000

Warning

Higher limits mean higher potential losses. Only use aggressive settings if you fully understand the risks.