Risk Monitoring
Track and analyze your trading performance to maintain optimal risk levels.
Overview
Effective risk monitoring helps you identify potential issues before they become serious problems. Regular monitoring of key metrics ensures your trading strategy stays within acceptable risk parameters.
Monitor your trading metrics at least daily, and set up automated alerts for critical thresholds.
Key Metrics
Performance Metrics
- Win Rate
Percentage of profitable trades
- Profit Factor
Ratio of gross profits to gross losses
- Sharpe Ratio
Risk-adjusted return measurement
Risk Metrics
- Maximum Drawdown
Largest peak-to-trough decline
- Value at Risk (VaR)
Potential loss under normal conditions
- Risk/Reward Ratio
Average win size vs average loss size
Monitoring Tools
Available Tools
Real-time Dashboard
- • Current positions overview
- • Active risk exposure
- • Performance metrics
Alert System
- • Risk threshold alerts
- • Performance notifications
- • System status updates
Alert Configuration
Risk Thresholds
- • Daily loss limits
- • Position size warnings
- • Exposure alerts
- • Volatility thresholds
Notification Methods
- • Email notifications
- • Mobile alerts
- • Dashboard warnings
- • Webhook integrations
Best Practices
- • Review metrics daily
- • Set conservative alert thresholds
- • Document all risk events
- • Regular system maintenance
- • Periodic strategy review