How FELOS Bots Manage Exposure, Volatility & Black Swan Events
In crypto trading, profit is sexy.
But risk management is survival.

At FELOS LIMITED, we didn’t just build bots that can win —
we built bots that know when not to play.

Here’s a look inside the risk engine that protects our capital, adapts to volatility, and thrives in chaos.

Rule #1: Capital Must Be Protected First
Before any trade is placed, our system runs a capital exposure audit:

How much is already committed?

What is the combined directional bias?

Are current volatility levels within acceptable bounds?

Is liquidity sufficient for safe exit?

If conditions aren’t right, the trade is skipped.
No emotion. No overtrading. No exceptions.

Dynamic Position Sizing
FELOS bots never use fixed position sizes.

Instead, they dynamically adjust based on:

Volatility (higher vol = smaller size)

Asset liquidity (thin books = tighter risk)

Time of day & session overlap

Strategy confidence rating

This keeps drawdowns tight and capital allocation intelligent, not aggressive.

Built-in Stop Logic (Not Just Price-Based)
Most bots use price-only stop-losses.
FELOS goes further with multi-layered stop logic:

Price-based: classic % or volatility trailing stops

Behavioral: exit if order book loses integrity (spoofing, manipulation)

Sentiment-based: exit if news shifts sentiment violently

Macro-event detection: halt trading during extreme market-wide risk

This isn’t just smart —
it’s essential when bots are operating across dozens of volatile assets 24/7.

Cross-Bot Risk Synchronization
When one strategy sees elevated risk, it alerts the others.

Example:

If Sentiment Bot detects regulatory FUD, it sends a “risk flag”
? Momentum Bot reduces leverage
? Arbitrage Bot avoids thin-volume venues
? Global risk coefficient is raised system-wide

This cross-bot communication is part of what makes FELOS truly adaptive.

Black Swan Protocol
Yes, we planned for the worst.

When markets become completely dysfunctional (think: FTX crash, depegs, flash crashes),
our bots enter "freeze mode", halting all entries and flattening risk:

Open positions are managed toward exit

New trades blocked

Hedging activated if needed

Manual override window opens (with AI suggestions logged)

You can’t predict a black swan.
But you can build a system that doesn’t drown when it arrives.

The Philosophy: Don’t Just Win — Stay in the Game
Most bots are optimized for performance in normal markets.
FELOS bots are optimized for resilience, so they can survive the abnormal ones.

Because in crypto,
the edge isn’t just in the entries — it’s in the exits.