Risk Management
16-Check Gate. Mandatory Stop-Loss. Kill Switch.
Every trade must pass 16 independent safety checks before a single order is placed. Stop-loss is mandatory on every position and cannot be removed. The R-based kill switch automatically halts trading after daily or weekly loss limits are reached.
Risk Gate
All 16 checks must pass, one failure blocks the trade
The 16 Pre-Trade Gate Checks
Every single check must pass before an order reaches the exchange. A single failure blocks the trade entirely. These run automatically, no manual review required.
Trading active
Confirms the platform trading engine is running and the user's auto-trading toggle is enabled.
Subscription valid
Verifies the user is on an active Free Trial, Pro, or Premium plan (or has an admin-granted waiver).
Symbol tradable
Confirms the symbol is actively trading on the target exchange, not in maintenance mode.
Not in blacklist
Checks both the platform-level blacklist and the user's personal blacklist (symbols the user has excluded).
No duplicate position
Prevents opening a second position or placing a duplicate limit order in the same symbol.
Within tier capacity
Checks that the user has not exceeded their plan's maximum concurrent positions: 5 / 10 / 20.
Capital available
Verifies sufficient free balance on the exchange to cover the trade, including Leg 2 reservation.
Minimum order size
Ensures the calculated position size meets the exchange's minimum and QARI's own $5 per-trade floor.
Spread within limit
Checks that the bid/ask spread is not abnormally wide, a wide spread indicates low liquidity.
Concurrency lock clear
Prevents two simultaneous entry attempts for the same user/symbol pair via a distributed lock.
Cooldown clear
Enforces a per-symbol cooldown after a stop-loss is hit. Prevents immediately re-entering.
Correlation check < 0.85
Calculates 30-day price correlation between the candidate and every currently open position.
R/R ratio ≥ 2.0
Calculates the Risk/Reward ratio using proposed entry, stop-loss, and nearest profit target.
ATR regime gate
Measures current ATR(14) on the 4H chart against the 30-day ATR median. No entries in dead zones.
R kill switch clear
Checks if the user's R-based kill switch is active: −2R/day or −5R/week halts new entries.
Three-point confluence
Verifies at least 3 of 5 distinct signal types converge at the entry zone. The final and strictest gate.
Stop-loss is not optional. It is architectural.
Placed on the exchange at the exact moment of entry. Platform bounds: minimum 10%, maximum 30% from entry price.
The R-Based Kill Switch
Automatic Daily Halt: −2R
After losing 2R in a single calendar day, all new trade entries halt automatically for that user. Open positions continue to be managed normally. The limit resets at midnight UTC.
Automatic Weekly Halt: −5R
After losing 5R in a rolling week, all new entries are suspended until the following Monday. This prevents a cascade of losses during a hostile market regime.
What is R? R is the amount risked on a single standard trade. If your stop-loss is placed 2% from entry and your position size is $200, then 1R = $4. The kill switch uses R-multiples so the protection scales proportionally with your capital, not just a fixed dollar amount.
Portfolio-Level Protection
Correlation Protection
Before adding any new position, QARI calculates the 30-day price correlation between the candidate and every existing holding. If correlation with any open position reaches 0.85 or above, the entry is blocked.
This prevents the common trap of holding multiple altcoins that all move together, giving the illusion of diversification while carrying concentrated risk.
Mandatory Stop-Loss
A stop-loss order is placed on the exchange at the exact moment of entry. It is not a setting that can be turned off. It cannot be removed from the dashboard.
Stop-loss levels are placed below the order block or swing low that invalidates the setup. Platform bounds: minimum 10%, maximum 30% from entry price.
Risk Management. FAQ
Systematic risk management, every trade
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