Layer one: trade limits
Start with acceptable planned risk, then use the stop level and costs to determine allocation. Risk budget and purchase value are different. A stop or limit cannot guarantee that realized losses stay within plan.
Layer two: correlated exposure
Similar assets, aligned signals and separate strategies can amplify the same risk. Correlation checks account for both used and pending risk, rather than assuming that several trades are diversified.
Layer three: portfolio defense
Portfolio rules coordinate total headroom, loss and drawdown. They can reduce or pause new risk. Pausing new risk does not automatically liquidate existing holdings. If an order result is unknown, keep its reservation and reconcile the original order first.
Layer three: portfolio defense A failed check at any layer can stop new risk. Pausing is not liquidation.
Check the actual conditions
Use strategy settings and process records to review parameters, constraint reasons and confirmed state. For a paused action, identify which layer triggered and what is required to resume. If an order remains unconfirmed, reconcile the original operation before submitting another.
The website illustrates how the layers relate. Actual account headroom, execution and recovery outcomes depend on confirmed product records.