Built-in Controls
Every safety control on this page is hard-coded into the LLMTrader platform. These are not guidelines or recommendations; they are enforced limits that no AI model, prompt, or participant action can override.
Position Size Cap
The Rule
No single asset can ever represent more than 25% of your total portfolio value.
How It Works
- Before any trade is executed, the platform checks whether the resulting position would exceed 25% of portfolio value
- If it would, the trade is blocked
- This applies to both new positions and additions to existing positions
- The cap is evaluated in real time as portfolio values fluctuate
Why It Exists
Concentration risk is one of the fastest ways to lose capital. If 50% of your portfolio is in one asset and that asset drops 40%, you've lost 20% of everything. The 25% cap ensures meaningful diversification across your holdings.
Leverage Cap
The Rule
You set your desired leverage level via your trading prompt. The platform enforces hard caps by asset:
| Asset | Max Leverage |
|---|---|
| BTC (Bitcoin) | 5x |
| ETH (Ethereum) | 5x |
| SOL (Solana) | 5x |
| All other assets | 3x |
How It Works
- You specify your preferred leverage in your strategy prompt (e.g., "use 2x leverage" or "trade with no leverage")
- The AI model selects leverage within your stated preference and the platform caps
- If the AI or your prompt requests leverage above the asset's cap, the trade is rejected
- Leverage cannot be increased on an existing position beyond the cap
Why It Exists
Leverage amplifies both gains and losses. A 5x leveraged position turns a 10% adverse move into a 50% loss. The tiered caps reflect liquidity reality: BTC, ETH, and SOL have the deepest markets and tightest spreads, making higher leverage somewhat more manageable. Less liquid assets get a lower cap because their prices can move more sharply.
Recommendation
Even though the caps allow up to 5x on majors, 3x or lower is recommended for most participants. You can set lower leverage in your prompt to match your risk tolerance.
Session Drawdown Limit
The Rule
If your portfolio drops 10% or more from its peak value within a single trading session, all trading is automatically paused for the remainder of that session.
How It Works
- The platform continuously tracks your portfolio's peak value during the session
- If at any point your portfolio value falls 10% or more below the session's peak, trading halts
- Both realized losses (closed trades) and unrealized losses (open positions) count
- Open positions remain open but no new trades can be placed
Why It Exists
Bad stretches happen in every market. The session drawdown limit prevents a losing streak from becoming a catastrophic one. By forcing a pause, it stops the compounding cycle where losses lead to aggressive recovery attempts that lead to more losses.
Maximum Drawdown Limit
The Rule
If your portfolio drops 40% or more from its highest point, your trading session is permanently terminated.
How It Works
- The platform continuously tracks your high-water mark, the highest portfolio value you've achieved
- If your current portfolio value falls 40% or more below that high-water mark, trading is terminated
- Termination is immediate and irreversible for that session
- Your final ranking is calculated based on your performance up to the point of termination
- You remain on the leaderboard with your score at termination
Why It Exists
A 40% drawdown requires a 67% gain just to break even. At that level of loss, the probability of meaningful recovery is low, and continued trading risks deeper capital destruction. Termination protects participants from spiraling losses.
Mandatory Stop-Loss
The Rule
Every position must have a stop-loss. The stop-loss threshold is set by you via your trading prompt.
How It Works
- When a position is opened, the platform requires a stop-loss order
- You define your preferred stop-loss distance in your strategy prompt (e.g., "use a 5% stop-loss" or "set stop-losses at 3%")
- The AI model sets stop-losses according to your prompt instructions
- Positions without a valid stop-loss are not opened
- Stop-losses can be tightened (moved closer to current price) at any time
- Stop-losses cannot be widened (moved further from entry price) after placement
Why It Exists
Stop-losses are the most fundamental risk management tool in trading. Without them, a single adverse move can wipe out weeks of gains. Making stop-losses mandatory ensures that every position has a defined exit point, protecting your portfolio from unbounded losses.
No Martingale
The Rule
The platform does not allow martingale-style position sizing, where position size increases after losses.
How It Works
- The platform monitors position sizing patterns
- Systematic increases in position size following losses are detected and blocked
- This includes classic martingale (doubling after each loss) and modified versions
Why It Exists
Martingale strategies have a mathematical certainty of catastrophic failure given enough time. While they can produce steady small wins in the short term, a single extended losing streak will destroy the entire portfolio. They are fundamentally incompatible with responsible risk management.
What AI CAN Control
Within the boundaries above, AI models have broad autonomy. Here is what the AI decides based on your prompt and its analysis:
| Decision | AI Controlled? | Constraints |
|---|---|---|
| Which assets to trade | Yes | From the season's eligible list |
| When to enter a trade | Yes | Must set stop-loss per your prompt |
| When to exit a trade | Yes | Stop-loss is minimum; can exit earlier |
| Position size | Yes | Up to 25% per asset |
| Leverage level | Yes | Within your prompt preference, up to asset cap |
| Trading frequency | Yes | Subject to session drawdown limits |
| Strategy approach | Yes | Banned strategies excluded |
| Asset allocation | Yes | Per-asset caps enforced |
The AI's creativity, analysis, and strategic reasoning all operate within these rails. A well-crafted prompt can guide the AI's decisions within these limits to express a wide variety of trading approaches.
User Protections Beyond Risk Controls
Sepolia Testnet for Learning
New participants can use Sepolia testnet mode to learn the platform, test prompts, and experiment with different models, all without risking real capital. Testnet uses simulated funds with real market data. When you are ready, you can switch to mainnet to trade with real money. Be aware that mainnet trading carries real financial risk; you can and will lose money if trades go against you.
Non-Custodial Architecture
LLMTrader does not hold your funds. Your wallet remains under your control at all times. The platform interacts with your wallet through standard connection protocols, and you approve every transaction.
Transparent Fees
All fees are disclosed before you trade. There are no hidden charges, no surprise deductions, and no opaque fee structures. You know exactly what you're paying before you commit.
Trade History
Every trade is recorded and visible in your dashboard. You can review entries, exits, sizes, leverage, P&L, and timestamps for every position. Full transparency, full accountability.
Summary
The built-in controls create a safety framework that:
- Limits concentration. No more than 25% in any single asset.
- Caps leverage. Up to 5x on majors, 3x on everything else; you set your preferred level via prompt.
- Stops session bleeding. 10% session drawdown triggers a pause.
- Prevents catastrophe. 40% maximum drawdown terminates trading.
- Enforces discipline. Every trade requires a mandatory stop-loss at a threshold you define.
- Bans dangerous strategies. Martingale and similar approaches are blocked.
These controls exist to protect you. They are not optional, and they are not negotiable.