Risk management determines whether a trading process can survive normal losing streaks. Define risk before entry, size positions from the stop distance, set daily and weekly limits, and reduce exposure when execution quality or market conditions deteriorate.
A practical evaluation framework
Start with a clear objective, use measurable rules, and document the result. Demo-test new tools or changes under conditions that resemble your intended live environment.
Final takeaway
Good tools support a disciplined process; they do not replace one. Keep expectations realistic and protect capital first.