summary: edgeful algos give you fine control over risk management — here's what you can adjust and how it all works together.
adjustable parameters
position size: how many contracts or shares per trade
stop-loss (SL): max loss per trade
take-profit (TP): profit target that closes the trade
trading hours: when the algo executes trades
max loss: cumulative loss limit — if you hit it, positions close. available on all algos except the IB algo (more on that below)
timeframes: intraday, daily, or longer — depends on your strategy
what affects performance
trading goals: high return vs. low-risk — this shapes everything else. adjust risk tolerance and expectations to match your goals.
asset choices: stocks, currencies, futures — they behave differently. pick what fits your strategy.
timeframes: short-term intraday or long-term positions — choose based on your objectives, not the chart you're looking at.
default settings and optimization
negative performance often comes from restrictive defaults — like max loss set to 100, which can cut trades too early.
here's a 5-step optimization process:
define your objectives — goals, risk tolerance, assets
select and configure parameters — assets, timeframes, risk metrics
backtest with historical data
iterate and optimize based on results
deploy in live markets — monitor and adjust as needed
test ORB strategies first — they've shown strong breakout performance. always backtest or use demo accounts before going live.
how stop-loss and max loss interact
in automation, the algo honours your SL first. but if total loss hits max loss before that, positions close at the max loss limit.
note — the IB algo does not have a max loss setting. the IB algo enters trades on a retracement back into the initial balance range, so a cumulative max loss limit could interfere with the retracement entry logic. risk on the IB algo is managed through your stop-loss and position size instead.
in manual trading, max loss doesn't apply — execution happens directly on your broker's platform.
this layered approach gives you control but needs careful setup.
daily operations
most edgeful algos close all positions at the end of the trading day or session. no overnight holds. this keeps risk managed and results clear.
multiple take-profit targets
IB and 2TP ORB algos support 2 TP levels. other algos are limited to 1.
you can also configure position sizing — how many contracts per trade.
entry and exit orders
entries use limit orders to reduce slippage during volatility.
exits (TP and SL) use market orders — prioritizing execution certainty over price precision. this ensures you get out when you need to.
key takeaways
edgeful's algos are flexible. understand how max loss and SL interact (and that IB handles risk differently — through SL and position size only). test parameter changes thoroughly. optimize your defaults — this level of control means you can design strategies that match your exact risk-reward profile.