Risk management for automated trading
The biggest danger of an auto trading bot is not that it trades, but that it trades with the wrong size. Good risk management means the size of every trade is decided by your rules, not by the bot's mood or the signal's lot size.
Size every trade from the stop loss
The risk of a trade is the distance to the stop loss multiplied by the lot size. Vanta FX starts from the amount you are willing to lose, either a fixed lot, a percentage of balance or a fixed dollar figure, and calculates the lot size that matches it for each signal.
A hard cap on every trade
No trade may risk more than a set share of your balance, and accounts under a small balance threshold are held to a lower share. If a trade would exceed the cap it is skipped rather than shrunk silently.
Never round the lot size up
Brokers have a minimum lot. If the correct size is smaller than the minimum, the trade is skipped instead of being rounded up, because rounding up would risk more than you chose.
Protect the trade while it runs
A stop moved to breakeven, a partial profit at the first target and a closing rule at the final target all reduce how long a trade is exposed. These updates run on the server, so they happen even when you are offline.
Keep control of your account
Your funds stay at your own broker, you can stop the bot at any time, and trades that are already open stay in your hands when you do.
Frequently asked questions
How should an auto trading bot manage risk?
By sizing each trade from its stop loss and your risk limit, capping the risk per trade, and refusing trades that cannot be sized safely.
What is a good risk per trade for automated trading?
There is no single right answer and it is not advice. Many traders risk a small percentage of their balance per trade. Pick a level you can afford to lose.
What happens if the lot size is below the broker's minimum?
The trade is skipped. Vanta FX never rounds up, because that would increase the risk beyond what you set.
Can I stop the bot whenever I want?
Yes. Stopping the bot prevents new trades from being placed, and trades that are already open remain on your account.
Put it to work on your MT5 account
Accounts are set up by our team. Join our Discord to see the signals and get your login once your plan is confirmed.