AlgoRun is where your AlgoBuild strategy comes to life. Once you have built and validated your algorithm, AlgoRun lets you connect it to your exchange or broker account and configure how it manages capital in live market conditions. This guide walks you through each parameter and how to use them effectively.
01 Parameters
Leverage defines how much of your total capital is allocated per position.
- A value below 1 means a fraction of your capital — for example, 0.3 allocates 30% of your balance per trade.
- A value above 1 means you are multiplying your capital using broker-provided leverage — for example, 3 opens a position worth 3× your total balance.
The higher the value, the larger the position size — and the greater the potential gain or loss.
Example — Capital $10,000
| Leverage | Position Size | Stop Loss (−3%) | Take Profit (+6%) |
|---|---|---|---|
| 0.25 | $2,500 | −$75 | +$150 |
| 5 | $50,000 | −$1,500 | +$3,000 |
At leverage 5, you are borrowing $40,000 from the broker. Gains and losses scale accordingly.
This parameter is required.
This optional parameter offers an alternative — and often more precise — way to size your positions. Instead of specifying how much capital to deploy, you specify exactly how much of your capital you are willing to lose if the stop loss is hit.
How It Works
If your algorithm has a stop loss set at 2% below the entry price, and you set your risk amount to 0.5%, AlgoRun will automatically calculate the position size such that a stop loss hit results in exactly a 0.5% loss on your total capital. In this case, it will allocate 25% of your capital to the position — because 2% of 25% equals 0.5%.
Important: This parameter only works when a stop loss is defined at the moment the order is placed. If your strategy uses a conditional or delayed stop loss, AlgoRun falls back to the leverage value to determine position size. For this reason, Leverage must always be filled in — Risk Amount is applied when possible, and Leverage serves as the fallback.
Priority rule: When both parameters are filled, and a stop loss is defined at order placement, Risk Amount takes precedence over Leverage.
The drawdown limit defines the maximum decline your capital is allowed to experience from its highest recorded value (peak) before AlgoRun automatically stops the algorithm.
For example, if your capital peaks at $12,000 and you have set a 20% drawdown limit, the algorithm will stop if your balance falls to $9,600 — protecting you from further losses during an extended losing period.
Keep in mind: Higher leverage naturally leads to higher drawdown exposure. If you set an aggressive leverage value but a conservative drawdown limit, the algorithm may stop after only a few losing trades — never getting the opportunity to recover. Always set your drawdown limit in proportion to your leverage.
02 Practical Guidelines
Understanding the Baseline Performance Figures
All annualized P&L figures shown on strategy cards and AlgoBuild backtest results are calculated using a default leverage of 0.05 — meaning 5% of capital is allocated per trade. This standardization makes strategies comparable across the board.
Use these figures as a reference point when deciding your own risk level in AlgoRun. For example, if a strategy shows an annualized return of 53.48% with a 19% drawdown at the default 5% per trade, you can scale this proportionally:
- Increasing allocation to 15% per trade (leverage 0.15) — 3× the default — would be expected to produce approximately 3× the return (~160% annualized) and approximately 3× the drawdown (~57%)
These are estimates based on proportional scaling and not guarantees. Actual results will vary.
03 Balancing Leverage and Drawdown
A common mistake is setting a high leverage alongside a low drawdown limit. This combination causes the algorithm to stop prematurely after a small number of losing trades — before it has the chance to recover. Always give your algorithm enough room to breathe.
Use the following table as a practical starting point:
Example — Capital $10,000
| Risk per Trade | Recommended Drawdown Limit |
|---|---|
| 0.5% | 7–10% |
| 1.0% | 15–20% |
| 1.5% | 20–25% |
| 2.0% | 25–35% |
Risk per Trade refers to the percentage of your total capital at risk in a single trade — either as directly set via Risk Amount, or as calculated based on your Leverage and stop loss size.
Trading involves risk. Past backtest performance does not guarantee future results. AlgoRun provides tools for automated trading. Users are responsible for their own trading decisions.