Algorithmic Trading
Risks of Algorithmic Trading
Understanding the risks of algorithmic trading and how institutional frameworks mitigate capital exposure.
Market and Model Risk
All trading involves risk of loss. Algorithmic systems face model degradation, regime changes, and liquidity events that can impact performance.
Professional frameworks include drawdown limits, position sizing caps, and emergency stop protocols.
Technology and Operational Risk
Infrastructure reliability, execution quality, and broker connectivity are critical operational considerations.
PrysmAlgo maintains 99.97% uptime with redundant monitoring across all active strategies.