Risk Management
Systematic trading means: risk is not a surprise — it's a decision. KAKADU treats risk as a first-class citizen. Every strategy is equipped with clear rules for position sizing, entry conditions, and exit logic before the first trade is executed.
Position Sizing & Capital Allocation
Define how much capital is deployed per strategy — in absolute terms or as a percentage of your portfolio. KAKADU prevents any single position from becoming oversized.
- Maximum capital per trade (absolute or relative)
- Maximum number of concurrent positions
- Automatic scaling based on available capital
Entry Filters: Only in when it makes sense
Not every signal is a good signal. KAKADU checks multiple conditions simultaneously before every entry:
- Score threshold: Minimum score must be met — otherwise no trade
- Spread filter: High spreads are automatically blocked (your edge starts before the entry, not after)
- Barrier proximity: For knock-out products: entry is blocked if the barrier is too close
- Market regime: Optional filtering by market phase (trend, sideways, volatility)
Exit Rules: Protect profits, limit losses
Exit decisions are the hardest in trading — KAKADU makes them systematically:
- Stop-loss: Fixed or dynamic stop based on entry price
- Take-profit: Target R-multiple or absolute price target
- MFE Peak Protection: Protects built-up profits — exits if P&L drops below a defined fraction of the highest point reached
- Time limit: Maximum hold duration in minutes or days
- Score reversal: Automatic exit when the original entry signal reverses
- Overnight exit: Positions are closed before market close if desired
Transparency & Monitoring
KAKADU shows you the status of all open positions at any time — current score, active exit rules, and why an exit was triggered or prevented. No guessing — just facts.
Backtesting as a Safety Net
Before a strategy goes live, you validate it historically. KAKADU shows you:
- Profit factor, win rate, maximum drawdown
- Distribution of R-multiples
- Direction accuracy: How often did the signal point the right way? Only strategies with a proven edge go live — that's the standard.