CIPHERRisk Management
Making money matters. Not losing it matters more. CIPHER is built around that order.
All six of these controls run automatically on every trade. Nothing to configure — they're baked into how CIPHER thinks.
Take Profit / Stop Loss
Every position has a hard +5% take profit and -2.5% stop loss. These fire automatically regardless of what the AI signal says. Profits get locked in, losses get capped.
Loss-Cutting Pressure
If a position moves more than 2% against CIPHER, the model starts applying escalating internal pressure to exit. It won't just sit there holding through a deepening loss.
Overtrading Prevention
Three layers: a 3-candle cooldown between trades, a hard cap of 15 trades per episode, and a penalty for more than 2 trades in any 10-candle window. Keeps CIPHER disciplined in choppy markets.
Fee-Aware Decision Making
Every potential trade gets evaluated against a 0.1% entry fee and 0.1% exit fee. If expected profit doesn't beat total transaction costs, CIPHER doesn't open the position.
Max Hold Duration
Positions held longer than 20 candles get force-closed. This prevents the model from sitting in a position indefinitely, hoping for a turnaround that may never come.
Data Integrity
The scaler is fitted on training data only — no future price information leaks into the model. The LSTM validates with an internal 80/20 split and early stops when overfitting is detected.
Maximum Drawdown
CIPHER's training process penalises large drawdowns directly. The reward function rewards clean exits and punishes forced stops — which teaches the model to get out gracefully before losses snowball. Under normal market conditions, max drawdown per session stays well inside single digits.
What CIPHER Does Not Do
- No leverage by default. CIPHER only bets what you have.
- No revenge trading. After a stop-loss, it waits for a fresh high-confidence signal before re-entering.
- No low-conviction entries. If nothing clears the confidence threshold, CIPHER sits in cash.
Disclaimer
No trading system eliminates risk. These controls reduce exposure to the common ways systems blow up, but flash crashes, exchange outages, and liquidity gaps can hit any automated system. Only deploy capital you can afford to lose, and check the dashboard regularly.