Bot allocation limits are in place to safeguard traders and force you to think critically about all positions in your portfolio. Allocation and position limits were designed to prevent you from overtrading inside any bot. These limits are how bots follow your rules and determine that you have enough capital available for a strategy and that you’ve set your appropriate daily and total position limits that the bot will use.
When a new bot is created, you must enter specific allocation and position limits in the global settings. Bot capital allocation limits are calculated at position entry. These are important limits that the bot must adhere to for all trading and ensures your exact instructions are followed. This is another great example of how you can transfer portfolio management to your bot and trust that it will do exactly what you want.
Anytime a position or allocation limit is reached, the bot will no longer open new positions until a trade is exited (through the bot or manually) or more capital becomes available.
You can always edit the global setting to reflect changes in your account or strategy. The bot log and position tab record all activity in the bot and displays when and where an automation encountered an error related to the global settings.
Bot allocation limits were put in place for your protection and to give you peace of mind that you are never over-allocated to one bot or one position. Of course, this means that you must think strategically about your bots and how they fit into your total portfolio management.
We highly suggest that you take the time to map out every position bot by bot and map out your portfolio from a holistic point of view.