> For the complete documentation index, see [llms.txt](https://guida-2.gitbook.io/guida-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guida-2.gitbook.io/guida-docs/features/risk-controls.md).

# Risk Controls

Risk controls are the guardrails that keep every strategy operating within limits *you* define. They're what make automation trustworthy: Guida can run tirelessly and without emotion precisely because it's bounded by rules that can't be talked out of in a moment of fear or greed.

*(For the principles behind these tools, see* [*Risk Management*](/guida-docs/core-concepts/risk-management.md)*. This page covers the controls themselves.)*

## The controls at your disposal

### Stop-loss

Automatically exits a position when it falls to a level you set. Your circuit breaker — it converts an open-ended loss into a small, defined one. Guida honors it instantly, every time, with no hesitation.

### Take-profit

Automatically secures gains at a target you set. It removes the temptation to get greedy and watch a winner evaporate. You decide what "enough" looks like; Guida locks it in.

### Maximum spend

Caps the total capital a strategy can ever commit. No matter how often its triggers fire, a strategy can't exceed this ceiling — so an aggressive rule can't quietly consume your whole portfolio.

### Position sizing

Controls how much goes into each individual trade, so that being wrong on any one position is survivable rather than catastrophic.

### Expiry

Automatically winds a strategy down after a set period — ideal for strategies built around a specific window or thesis, so they don't outlive their logic.

## Why enforced rules beat good intentions

Everyone *intends* to cut their losses and take their profits. In the moment, emotion usually wins — you hold a loser hoping it comes back, or you ride a winner until it turns. Guida removes that failure point. When you set a stop-loss, it *will* trigger. When you set a max spend, it *will* hold. The discipline you know you should have becomes discipline you actually have.

> Risk controls are the difference between "I have a strategy" and "I have a strategy I'll actually stick to."

## Best practices

* **Never run a strategy without a stop-loss.** An undefined downside is the most common way portfolios get hurt.
* **Set a maximum spend on everything.** Always know the most a strategy can commit.
* **Size so no single position can sink you.** Modest sizing is unglamorous and enormously protective.
* **Decide your exits before you enter.** Encode the plan while you're calm, not while you're panicking.

## You are always in control

Every risk control is set by you and can be adjusted or removed at any time. Guida enforces your rules; it never overrides them. And you can always pause or stop a strategy outright from the [dashboard](/guida-docs/features/dashboard.md).

***

**Related:** [Risk Management concept](/guida-docs/core-concepts/risk-management.md) · [Security & Control](/guida-docs/reference/security.md) · [Going Live](/guida-docs/getting-started/going-live.md)


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