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Throughout the entire series, we addressed the topic of risk control several times. The concepts of a normalized trading strategy were introduced, the parameters of which ensure that a drawdown level of 10% is achieved during the test period. However, normalizing trading strategy instances, as well as groups of trading strategies, in this way can only provide a given drawdown over a historical period. We cannot be sure that the specified drawdown level will be observed when starting a test of a normalized group of strategies on the forward period, or launching it on a trading account.

Recently, the topic of risk management was considered in the articles Risk manager for manual trading and Risk manager for algorithmic trading. In these articles, the author proposed a programmatic implementation that controls the compliance of various trading parameters with pre-set indicators. For example, if the set loss level for a day, week or month is exceeded, trading is suspended.

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