Effective risk management is at the core of the SwingArm High Pressure System automation. Market volatility can be unpredictable, and our goal is to maximize profitability while minimizing risk exposure.
Risk Control & Strategy Allocation
The system currently operates with three independent strategies, each designed with unique entry criteria. While all three can trigger simultaneously, they typically take turns based on market conditions, as their cycle sequences vary.
- Initial Trade Size: Each strategy begins with one contract per entry, with the ability to scale up to a maximum of three.
- Active vs. Standby: Typically, one strategy is active at a time, while the others remain on standby until their entry conditions are met. In some cases, all three strategies may hold one contract each, which is the maximum allowed during the initial qualification phase of TopStep.
- Profit Management: Manually closing a trade allows another strategy to utilize the freed-up contract, ensuring continuous trading opportunities.
Automation & Stop Loss Protection
Our automation, powered by TradersPost, ensures smooth execution and risk control:
- All three strategies can run simultaneously without issues.
- If any strategy reaches its stop loss, the system automatically closes all open trades and waits for the next valid setup.
- While the system can manage stop loss levels dynamically, the initial stop is set higher and adjusts as price action progresses. The highest risk occurs at entry, making trader engagement crucial.
Trader Engagement & Manual Management
At the moment of entry, traders must actively monitor price action:
- If price action does not move in the expected direction, the trader can manually close the trade to reduce unnecessary risk.
- This is especially important during high volatility, or when a short triggers near support or a long triggers near resistance.
- If price has been consolidating for an extended period, it may break through key levels as pressure builds. Traders must remain engaged and manage trades accordingly.
Optimized for Prop Firm Qualification
For traders using TopStep or other prop firms, it’s recommended to actively manage trades during the qualification phase. Once a significant profit buffer is built, the system’s full automation capabilities can be utilized for a seamless trading experience.