Risk Management

Protect your capital with proper risk management.

Key Principles

1. Position Sizing

Never risk more than 1-2% per trade
Scale position size with capital
Consider market conditions

2. Stop Losses

Always use stop losses
Set based on volatility
Don't move stop losses down

3. Take Profits

Have clear profit targets
Consider partial exits
Let winners run (within reason)

4. Diversification

Don't over-concentrate
Spread across multiple tokens
Limit simultaneous positions

Configuration for Safety

toml

# Conservative settings
buy_amount_sol = 0.01
stop_loss_percentage = 15.0
take_profit_percentage = 30.0
timeout_seconds = 180

Warning Signs

Consecutive losses
Emotional trading
Chasing losses
Ignoring stop losses

Recovery from Losses

Stop trading
Review what went wrong
Adjust strategy
Test in dry mode
Resume with smaller size