Documentation · Risk
Limits and risks of automated trading
Automation removes the emotional component from execution, not the risk. This page lists the risks that remain even with good software, and reports the risk classification we apply to our products.
The risks that remain
- Market risk
- No strategy works in every condition. A prolonged adverse trend produces losses even on a well-built system.
- Drawdown
- A reduction of capital from its historical peak is physiological. It must be known and sized before trading, not discovered afterwards. The useful metrics are in drawdown and recovery factor.
- Leverage and lot size
- The same strategy with too high a lot size becomes speculative. The actual risk depends on the ratio between capital, volume and stop distance.
- Slippage and requote
- The execution price may differ from the requested one, especially in phases of volatility or around news. Deep dive in requote and slippage.
- Trading costs
- Spread, commissions and swaps affect the net result, particularly on high-frequency strategies: spread, slippage and commissions.
- Technical risk
- No connection, VPS down, terminal closed, system update: the EA does not trade if it cannot trade. See VPS requirements.
- Counterparty risk
- The relationship is between the user and their own broker. Softi is not an intermediary and does not intervene in execution.
- Regulatory and tax risk
- Rules on prop firms, funded accounts and the tax treatment of results change over time and by jurisdiction. A reference professional is needed.
The Softi Risk Traffic Light
The Traffic Light is an internal indicative classification, referring to a standard use of the software: balanced settings, proportional capital and settings consistent with the operating instructions. All software is customizable, and aggressive use can significantly increase risk compared with the starting classification.
Green · Controlled risk
Software with more balanced management, stop loss and lower exposure, if used with conservative settings and proportional capital.
Yellow · Intermediate risk
Software on more dynamic markets or logics, requiring greater attention in management.
Orange · Speculative risk
Software linked to more volatile assets or contexts, such as gold, commodities, crypto or prop firms.
Classification by product
| Experts | Level | Why |
|---|---|---|
| Softi Bull | Controlled | Multi-asset with a stop loss on the individual trade, with balanced settings and proportional capital. |
| Softi Cad | Controlled | In the conservative configuration it trades AUD/CAD with a gradual logic; risk rises with more aggressive settings. |
| Softi Go | Intermediate | A scalper structure with recovery logics: more delicate when the market takes an adverse trend. |
| Softi Bit | Intermediate | Balanced logic per individual trade, but on a market, crypto, that is more volatile and speculative. |
| Softi Metal | Speculative | Scalper on gold and commodities with filters on volumes and cycles: the volatility of the assets raises the risk profile. |
| Softi Prop | Speculative | Designed for prop firms: risk also depends on external rules such as the challenge's daily drawdown and max loss. |
How to verify results
We do not publish performance numbers on this page, and we do not ask you to trust a screenshot. The accounts are connected to Myfxbook, a third-party platform that reads the data directly from the broker and verifies its history: that is where performance and drawdown are checked. The weekly column is published on Money.it.
Notice
Trading on financial markets always involves risk. The Softi Trading Risk Traffic Light is an internal indicative classification and does not replace personal assessment or the opinion of a licensed advisor. Past results are not indicative of future results.