How to not exceed predefined risk limit ?

[automatic]

You initial bet needs to be < the the absolute value of max exposure.

The P&L check wont kick in until 1st best is matched... (as P&L = 0 before a bet is matched)

What if that first trade is the wrong one and exceeds my risk? Not that I want to give wrong instructions to the robot, but we are human and not infallible. One can change something in the settings by mistake. That's why I want to have a foolproof plan for how my robot will trade only within the limits I set for it.

That's why you test automation in practice mode first and then move to live with "small" stakes until it behaves as you would expect?

That's exactly what I did, but I wasn't expecting one edge case scenario that didn't happen during the entire testing period. And then I left the robot unattended for a while and it did completely unexpected things. And in chaotic markets, in my opinion, there are a lot of edge situations that one might not initially anticipate when creating a robot. That's why I want to be clear up front that this thing won't drain my entire account if something happens that I didn't count on.

[Dabbla]

The easiest way to do this, would be to calculate stake with SVs, then use that SV against the exposer limit.
Remember that if there are no prices in the market, then the value of that price is 0, make sure to add a condition that said price is greater than 1.
E.g If there are no back prices, then it will default that price to 1.01 and calculations will done from 1.01.

[sionascaig]

And remember, the bot does not do unexpected things, it does exactly what it was programmed to do. Its the markets that are behaving in ways you did not expect.

I use liability limits as described above all the time with no issues whatever in v gappy / thin markets...

Regarding your more general point about "safety / risk" exposure... This really depends on what you are doing, e.g. there is a huge difference between seeking value & leaving an open position v's trading where you expect to have a hedged position at some point...

In the event of the BF site going down or say you lose internet connection, if trading this can be huge..

If you look around this forum you will see lots of solutions to deal with these "external" events including back up internet providers, spare PC's, even backup power supplies to cover outages.

And within a bot you might find things like:

- selection liability limits
- market liability limits
- restrictions on number of bets that can be placed
- checks on book% (how well formed is the market)
- ensuring no bets can be placed just before the off
- cancelling unmatched bets near the off
- greening / closing trades in various scenarios

Dallas has also kindly supplied a "safety" servant to cover a variety of situations

In short, there are loads of ways to deal with exposure & you are quite right to be worried about it. Exactly how you deal with it depends on your appetite for risk and how much time you want to invest in it.





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