Risk Management
Equity protection, sometimes called a risk valve, is a set of account-level rules that pause or restrict trading when the account's equity behaves badly, for example after a losing streak, a daily loss, or a drawdown from the peak, regardless of what any individual signal says.
Per-trade rules such as a stop-loss protect one position. They do nothing against a sequence of correctly placed trades that all lose, which is exactly what a bad channel, a broken parser or an unusual market produces. Equity protection works on the account instead of the trade: it looks at how the balance is moving and closes the door on new exposure before the damage compounds. For anyone running signals unattended, it is the layer that decides how bad a bad night can get.
AlgoVesta implements equity protection as a server-side layer in front of every execution path, so it applies to Telegram signals, TradingView webhooks and MCP clients alike. The rules are per bot: a daily loss limit, a drawdown brake from the equity peak, a maximum number of open positions and of positions in the same direction, and a cooldown after a run of consecutive losses. A signal that fails any rule is not sent to the venue; it is recorded as blocked with the specific rule, shown on the bot card, and included in the daily summary email if the bot blocked several signals without trading. The layer never closes existing positions on its own; that authority stays with you, your stop orders and the panic button. It runs on AlgoVesta's servers, so it keeps working when your computer is off, and it cannot be bypassed by a prompt to an AI client. Details are on the crypto automation page and in the protection settings guide.
A trader runs a crypto channel with a $100 margin per signal, a maximum of four open positions, a daily loss limit of $150 and a three-loss cooldown of two hours. Overnight the channel fires eight signals. The first four open; the fifth and sixth are blocked by the position limit; two of the open trades are stopped out, then a third, which triggers the cooldown; the last two signals are blocked as well. In the morning the log shows exactly which rule blocked which signal.