System Constraints

Hello Matthew!

I found the idea of setting automated system constraints very interesting. I’d like to implement a system constraint specifying a maximum % risk per trade and a max % risk on all open trades. I noticed that there is an option that says:

"Trades must have a stop loss capping loss at this % of system equity (C2 will create one if you don’t)"

Does this refer to risk PER TRADE or risk for TOTAL OPEN TRADES?

In any case, wouldn’t you agree that BOTH options should be available?

Thank you beforehand for your answer.


Hi, Sergio:

The “System Constraints” feature is still a work in progress. That is a polite way of saying that there is much progress left to be made.

The constraint you are asking about does indeed refer to the entire system loss, not a single-trade loss. I agree it would be better to replace this with (or add) a per-trade constraint.

C2 actually does have a feature that allows AutoTraders to set their own, personal per-trade stop-losses when AutoTrading a system, but these stop losses are managed by the subscribers to trading systems, not by the publisher/creator of the system. I plan on migrating this feature so that system creators have access to it, too.

And then, once the testing period for the System Constraints reaches some kind of conclusion, I’ll add the Odysseus-bound-to-the-mast feature, which will forbid system developers from changing their agreed-upon constraints without a lengthy process and without agreement by subscribers to the system.

That is still to come, however.