Live Risk Controls and Circuit Breakers
Why Circuit Breakers Exist
Lesson video coming soon
Use the written notes below to continue learning.
Objective
Learn the operational purpose of circuit breakers and why they must be defined before live stress appears.
Workflow
- Identify the risks that can compound quickly: losses, repeated failures, bad API state, and poor market conditions.
- Convert each risk into a measurable trigger.
- Define what the bot should stop doing when the trigger fires.
- Write the evidence required before the breaker can be cleared.
Operator Checklist
- Every live bot has at least one loss-based and one error-based breaker.
- Breakers are visible to the operator before live mode starts.
- The pause action is automatic or clearly assigned.
- Resume rules are stricter than pause rules.
Common Mistakes To Avoid
- Adding breakers only after a bad incident.
- Setting thresholds so loose they never fire.
- Treating a breaker as a bug because it stopped trading.
Practice
Write one breaker trigger for financial loss and one for system reliability. Make each trigger measurable.