OQIRON
The Role of Risk Appetite
Risk appetite is used to define the limits on the funds, positions, leverage, and risk exposure that a bot can utilize. It is not a profit target, and selecting a higher risk level does not guarantee higher returns.
Drawdowns and Stop-Losses
A drawdown refers to the extent to which an account or strategy’s value has decreased from a recent high. Stop-loss orders and risk limits are used to prevent risk from escalating further; however, during periods of rapid volatility, insufficient liquidity, network disruptions, or exchange malfunctions, actual execution may differ from expectations.
Why Can’t I Sometimes Log In or Open a New Position?
The bot will refuse to start or block new risk positions if the risk assessment has expired, the API check is incomplete, funds are insufficient, the account mode is incorrect, there are reconciliation discrepancies, or the system is in protection mode.
Modify Risk Appetite
Risk preference is a runtime parameter read when the bot is launched. It cannot be changed directly while the bot is running or paused; you must first shut it down normally, modify the preference, and then restart it and pass the security check again. Modifying the preference will not overwrite existing order and profit records.
Risk appetite determines your tolerance level, not market outcomes.
Risk appetite affects the proportion of funds the bot can use, the maximum position size, and the overall risk budget. Choosing a higher risk level merely allows for greater volatility and potential losses; it does not make the strategy’s decisions more accurate. Clients should make their selection based on the maximum loss they are willing to accept in a worst-case scenario, rather than working backward from their desired returns to determine their risk tolerance.
When observing drawdowns, it is important to clearly define the starting point and scope. A single losing trade, a strategy’s decline from its peak, and a decrease in total account equity are not the same concepts. When evaluating a system, one should simultaneously examine net returns over a given period, maximum drawdown, risk exposure, and whether execution adheres to predefined limits.
After reading this, what should customers be able to do?
Truly understanding a knowledge article isn’t about memorizing a few terms, but about being able to make the right decisions based on actual page content and account status. Use the checklist below to verify whether you’ve grasped the key points.
- First, determine your acceptable loss, then select a risk level.
- Do not use increased leverage to cover short-term losses.
- Complete the robot’s safe shutdown before modifying preferences.
- Monitor returns, drawdowns, and account risk status simultaneously
Frequently Asked Questions
These questions are directly related to the content of this article. Answers are based on current platform rules and actual operational standards; however, when it comes to packages, percentages, the scope of available features, or account status, the information displayed on the customer dashboard and official statements shall prevail.
- Does higher leverage always mean higher returns? | No. Leverage amplifies both gains and losses as well as the risk of forced liquidation, but it does not increase a strategy’s win rate. The system limits leverage based on risk preference, account equity, and risk limits; this limit cannot be overridden via the customer portal.
- Does setting a stop-loss guarantee that you won’t be forced to liquidate? | No, it does not. Stop-loss orders and protective orders are used to manage risk, but extreme volatility, price slippage, insufficient liquidity, network latency, or exchange malfunctions may cause the execution price and time to deviate from expectations. The exchange may still execute a forced liquidation or position reduction in accordance with margin rules.
- Why Do Exchange Balances, Available Balances, and Bot Funds Differ? | Total account equity is reduced by position margin, order commitments, fees, and funding fees to arrive at the available balance; bots only use authorized strategy funds and maintain a risk reserve. These figures are inherently different.