Risk Management
Risk management articles covering position sizing, stop placement, portfolio exposure and drawdown, for both manual and automated trading.
14 articles in this category.
Market Data Quality: Avoid Stale Quotes & Bad Ticks
Understand market data quality risks like stale quotes, bad ticks, and missing bars. Learn how to mitigate these issues for more robust trading decisions.
Maximum Adverse Excursion: Stop Placement Without Hindsight
Master your trading by reviewing maximum adverse excursion (MAE) and optimizing stop placement. Learn data-driven analysis for better risk management.
Leveraged ETF Risk: Compounding & Holding Periods
Understand leveraged ETF risk: compounding, path dependence, and holding periods. Essential knowledge for intermediate traders.
Portfolio Drawdown Limit: Stop Risk Escalation
Master portfolio drawdown limits to control risk escalation. Learn essential rules for capital preservation and robust trading.
Volatility Sizing: Scale Risk, Not False Precision
Master volatility-based position sizing to scale risk effectively. Learn to calibrate risk units and navigate volatility estimation error for smarter...
Portfolio Correlation Risk: Beyond Ticker Count
Discover how ticker count can mask hidden concentration and portfolio correlation risk. Learn to identify and manage factor exposure overlap.
Limit Orders vs Market Orders: Trading Smart When Spread & Liquidity Matter
Learn when to use limit orders vs market orders to minimize slippage and maximize execution quality in volatile markets.
Earnings Gap Risk: How to Size Positions and Set Stops
Learn how traders manage earnings gap risk with precise position sizing, stop placement, and scenario planning. Actionable strategies inside.
Slippage in Trading: How Market Impact & Spread Costs Hurt Execution
Learn how slippage impacts trading execution quality, with actionable strategies to minimize market impact and spread costs.
Best AI for Stock Trading: Tools & Risk Management Tips
Discover the best AI for stock trading, how to use AI-powered analysis, and key risk management strategies for day traders.
Tradewink vs Robinhood: Best AI Trading Platforms 2026
Compare Tradewink and Robinhood for AI-powered trading. Discover the best AI stock picker and trading software for 2026.
Tradewink vs Robinhood vs TradeStation: AI Trading Bot Review
Compare Tradewink, Robinhood, and TradeStation for AI-powered trading. Discover the best AI stock picker and risk management strategies.
Best AI Trading Platforms: Risk Controls Compared
Compare AI trading platforms by automation, broker support, transparency, and risk controls before choosing a system for live trading.
Best AI for Day Trading: Tools & Risk Management Strategies
Discover the best AI for day trading and stock analysis, how to use AI for trading safely, and key risk management practices. Compare Tradewink vs.
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Frequently asked questions
How much should I risk per trade?
A common starting point is 0.5% to 2% of account equity per trade, with the lower end appropriate while you are still validating a strategy. What matters is that the number is fixed in advance and enforced automatically, because the trade you most want to oversize is usually the one you should not. Tradewink computes size from risk-based, ATR-based and half-Kelly methods and takes the most conservative of the three.
Where should I put my stop loss?
At the price that invalidates the reason you entered, not at a round dollar amount that feels tolerable. In practice that usually means beyond a structural level — under the swing low, outside a volatility band, past the opening range. Then size the position so that distance equals your fixed risk amount, rather than picking a size first and squeezing the stop to fit.
How do the current intraday margin rules work?
The old federal PDT designation and $25,000 minimum were replaced on June 4, 2026 by broker-administered intraday margin controls under amended FINRA Rule 4210. During the phase-in through October 20, 2027, broker-reported buying power, margin requirements, and account trading blocks remain authoritative. Tradewink does not add a separate round-trip quota.
Does an AI trading bot manage risk automatically?
It depends entirely on the product — several signal services have no risk layer at all. Tradewink runs risk checks before every paper order: per-position limits, daily loss limits, sector exclusions, a circuit breaker, and broker-reported intraday margin controls, all evaluated before the order reaches the simulator or paper account. A rejected trade is a working risk system, not a malfunction.
Is AI trading profitable?
Not inherently. AI improves consistency and coverage; it does not eliminate market risk, spreads, slippage or taxes. A strategy can win 60% of the time and still lose money if the average loss is larger than the average win, which is why expectancy and risk-reward matter more than win rate. Judge any service on resolved outcomes over a full cycle.
What is slippage and how much does it cost?
Slippage is the gap between the price you expected and the price you got, driven by spread, order size relative to available liquidity, and speed of the move. On liquid large caps it is often negligible; on thin names, at the open, or around news it can quietly exceed your entire expected edge. Tradewink models slippage and commission inside position sizing rather than treating fills as free.
Other categories
Engineering Learnings
First-hand engineering write-ups from running an autonomous trading system in production: the incidents, the root causes, and what we changed.
AI & Automation
How AI and automation are applied to trading: model routing, signal generation, broker APIs, and the limits of each.
Trading Strategies
Strategy breakdowns with entry rules, exit rules, and the conditions under which each approach stops working.
Market Analysis
Explore market structure, breadth, sector rotation, and data sources with research explainers to help inform your own trading decisions.
Options Trading
Options mechanics, Greeks, implied volatility, and strategy selection explained without the jargon wall.
Getting Started
Orientation for new traders: accounts, order types, paper trading, and the mistakes that cost the most early on.
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