Crypto Trading Bot Risk Limits Checklist: Max DD, Exposure Caps, and Kill Switches
A practical checklist of risk limits every crypto trading bot needs: max drawdown, max daily loss, exposure caps, volatility circuit breakers, and what to do when limits are hit.
Vantixs Team
Trading Education
Crypto Trading Bot Risk Limits Checklist: Max DD, Exposure Caps, and Kill Switches
Security is not only “don’t get hacked.” It’s also “don’t blow up.”
Minimum risk limits
- Max position size per symbol
- Max portfolio exposure
- Max daily loss (P&L stop)
- Max drawdown kill-switch
- Volatility circuit breaker (ATR/spread widening)
What happens when a limit triggers?
- Stop opening new positions
- Reduce exposure gradually (or flatten, depending on policy)
- Alert and require manual acknowledgement to resume
Next reads
- Safety hub: /blog/crypto-trading-bot-safety-guide-2026
- Backtesting hub: /blog/crypto-backtesting-complete-guide-2026
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