Risk Management for Copy Trading — Stop-Loss, Position Sizing, Drift
How to set up bulletproof risk controls when copy trading on Hyperliquid: portfolio stop-loss, per-position size caps, slippage limits and drift reconciliation. The framework whale.ag implements by default.
Risk Management for Copy Trading: Stop-Loss, Position Sizing, Drift
1. Set a portfolio stop-loss
Define the maximum drawdown you tolerate before the agent halts (default 15%). Double-confirmation prevents triggering on a single bad tick.
2. Cap per-position size
Maximum size of any single position as percentage of equity (default 40%). This limits exposure to a single asset blow-up.
3. Cap slippage per fill
Reject fills that would exceed your slippage budget (default 50 bps). Protects against thin books and late mirroring.
4. Use a per-coin allowlist (optional)
Restrict the agent to a list of assets you understand. Useful when copying a generalist who occasionally trades exotics.
5. Enable drift reconciliation
whale.ag checks every 30 seconds whether the agent's positions match the target's, and re-aligns automatically. Prevents silent divergence.
6. Review weekly
Check the equity curve, drift events and fee accrual every weekend. Adjust risk if your tolerance has shifted.
Frequently asked questions
What stop-loss is reasonable for crypto perps?
10–20% portfolio stop-loss is typical for crypto. Below 10% is over-protective and you will get whipsawed. Above 20% means you accept the risk of losing a fifth of your capital before the agent halts.
Why double-confirmation on stop-loss?
Single-tick stop-losses can trigger on a wick or a stale price. whale.ag waits for two consecutive measurements above threshold before halting — eliminates 95% of false positives.
What is drift reconciliation?
Position drift happens when the copier's positions diverge from the target — usually due to missed fills, slippage or timing. whale.ag detects drift > 2% every 30 seconds and rebalances automatically.
Can I disable risk controls?
You can loosen them, but you cannot disable portfolio stop-loss entirely. We believe a stop-loss is non-negotiable for non-custodial copy trading.
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How to set up bulletproof risk controls when copy trading on Hyperliquid: portfolio stop-loss, per-position size caps, slippage limits and drift reconciliation. The framework whale.ag implements by default.
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