What a bot's safety limits do
Every bot I build has the same set of limits, and you set every number. This is what each one does, and where it stops helping.
Daily loss stop
You pick a dollar amount. Once the day's losses reach it, the bot stops opening new trades for the rest of the day.
Largest position
The bot never holds more shares or contracts than the number you wrote down, even if your rules would add more.
Orders per day
You set how many orders the bot can send in a day, so a bug can't fire off one trade after another.
Kill switch
One switch cancels every open order and closes what the bot holds. It stays on until you turn it off yourself.
Paper first
The bot runs on an Interactive Brokers paper account for at least 5 trading days. It doesn't touch your real account until you sign off.
Exits held at the broker
Stop and target orders sit at Interactive Brokers, not only inside the bot. If your computer or your internet drops, they keep working.
Orders it didn't place
If the bot finds orders in your account that it didn't place, it won't start. It can't tell whether they're yours or a leftover, so it waits for you to look.
What limits can't do
A stop order isn't a promised price. In a fast move or a gap it can fill worse than your stop. Limits keep a bug or a bad day smaller. They can't tell you whether your rules are any good.
Education and software, not financial advice. Trading can lose money. Options can lose 100%. Genie Trades is not affiliated with or endorsed by Interactive Brokers.