> For the complete documentation index, see [llms.txt](https://help.quantower.com/quantower/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.quantower.com/quantower/miscellaneous-panels/risk-management.md).
# Risk Management
Create risk plan templates with daily profit and loss limits, max order and position sizes, then assign them to any account or connection in Quantower.
The **Risk Management** panel lets you define and enforce trading rules across your accounts — automatically. Instead of monitoring positions and P\&L by hand, you create a **risk plan template** that sets hard limits and pairs each limit with an action. Quantower then watches those limits in real time and acts the moment one is breached.
The panel is currently in **Beta**, so some behaviors may change in upcoming releases.
***
### Opening the Panel
Go to **Control Center → Risk Management**. The panel opens with one active control at the top:
* **\[+]** button for creating a new risk template for further assignment.
***
### Create a Risk Plan Template
A template is the set of rules Quantower will enforce. Click **\[+]** button to open the template editor.
Give the template a name, then work through the **Rules list**. Each rule has a checkbox — only checked rules are active. Unchecked rules are saved with the template but ignored at runtime, so you can prepare rules without enabling them yet.
#### Order and Position Limits
These rules cap how much you can trade at any moment. They trigger a hard block — Quantower will refuse the order or prevent the position from opening.
| Rule | What it controls (meaning) |
| ------------------------------------ | --------------------------------------------------------------------------------------- |
| Max order quantity | Maximum size of a single order |
| Max total orders quantity | Combined size of all orders at once |
| Max position quantity | Maximum size of a single open position |
| Max total positions quantity | Combined size of all open positions |
| Max position quantity by side | Maximum position size on one side (Buy **or** Sell — select the side from the dropdown) |
| Max total positions quantity by side | Same as above but across all positions on that side |
For the **by side** rules, use the dropdown next to the value to specify which side the limit applies to.
#### P\&L Limits
These rules watch your realized and unrealized profit and loss throughout the session. Each one has an **action** — what Quantower does the moment the threshold is crossed.
| Rule | What it controls (meaning) |
| ----------------------------- | ---------------------------------------------- |
| Day profit limit | Maximum intraday realized profit |
| Day loss limit | Maximum intraday realized loss |
| Open profit limit | Maximum unrealized profit across all positions |
| Open loss limit | Maximum unrealized loss across all positions |
| Open profit limit by position | Unrealized profit cap per individual position |
| Open loss limit by position | Unrealized loss cap per individual positio |
#### Account State Limits
These rules monitor your account balance and equity directly.
| Rule | What it controls |
| ------------------------- | --------------------- |
| Max account balance limit | Upper balance ceiling |
| Min account balance limit | Lower balance floor |
| Max account equity limit | Upper equity ceiling |
| Min account equity limit | Lower equity floor |
#### Available Actions
Each P\&L and account-state rule has its own action that fires when the limit is hit:
* **Do nothing** — the rule is logged but no automatic trade is placed. Useful for monitoring before you're ready to enforce.
* **Flatten** — Quantower immediately closes all open positions and cancels working orders.
#### Session Rules
These settings control when trading is allowed and what happens at the end of the session.
* **Trading time** — Define the allowed trading window as a start and end time (e.g., 04:00:00 – 03:00:00). Orders outside this window are blocked.
* **Auto action** — Set a specific time at which Quantower will automatically execute an action (e.g., Flatten at 03:00:00 to clear positions before the session closes).
* **Data latency, ms** — The maximum acceptable delay from your data feed. If latency exceeds this threshold, Quantower can trigger a protective action to prevent trading on stale data.
#### Lock on Risk Event
When this checkbox is enabled, Quantower locks the template assignment for the selected duration after any rule fires. This prevents the risk plan from being switched mid-session — intentionally or otherwise — immediately after a breach.
***
### Assign the Template to an Account
Once your template is ready, go back to the main panel and click **Assign** (or the **"+"** button). The **New risk assignment** dialog opens with four fields:
* **Connection** — The data/broker connection to apply this template to. Choose a specific connection or leave it as **All**.
* **Exchange** — Filter by exchange, or leave as **All**.
* **Account** — The specific trading account, or **All** to cover every account under the selected connection.
* **Plan template** — Select the template you created.
Click **Assign** to activate it. The assignment appears in the main list with an **Active** toggle you can flip without deleting the rule.
***
### Managing Assignments
The main panel table shows all active and inactive assignments at a glance.
| Column | Description |
| ------------- | -------------------------------------------------------------------------- |
| Active | Toggle to enable or disable the risk template without deleting it |
| Connection | The connection this rule applies to |
| Account | The single account (or All) |
| Exchange | The single exchange (or All) |
| Template name | The risk plan template in use |
| Edit | Open the template re-assignment |
| Clone | Duplicate the assignment (useful for tweaking a rule for a second account) |
| Delete | Remove the assignment permanently |
***
### Typical Setup for a Prop Trading Account
A common configuration for a funded account looks like this:
1. Enable **Min account balance limit** and set the action to **Flatten** — this protects your drawdown rule automatically.
2. Enable **Day loss limit** with **Flatten** — stops trading once the daily loss ceiling is hit.
3. Set **Trading time** to match your permitted session window.
4. Set **Auto action → Flatten** a few minutes before session close to ensure a clean exit.
5. Check **Lock template change on risk event** so the plan can't be bypassed after a breach.
With the template assigned to **All** connections and **All** accounts, every account under that connection inherits the same rules automatically.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://help.quantower.com/quantower/miscellaneous-panels/risk-management.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
