CAMM risk controls: the daily loss cap and escrow settlement

In CAMM, risk is not reduced to a “copy ratio”. Two protective mechanisms stand in front of your capital.

The automatic daily loss cap

If your account’s daily loss crosses the limit you set, the engine can halt copying until the next day. A bad day for the manager does not automatically devour your whole balance.

Escrow HWM settlement

The performance fee is charged only on profit above the account’s previous best — the High-Water Mark rule. The manager earns no fee for recovering past losses.

None of these controls make losses zero; they bound their size.

Read the details on the CAMM page and continue with the CAMM guide and the risk guide.

Frequently asked questions

Where is the daily loss cap set? In the CAMM connection settings, before activation. Take the number from your own risk tolerance, not from what others use.

What does HWM give me as an investor? It stops the manager from charging a fee for recovering a previous loss; the fee applies only to profit above the previous best.

What happens if the daily cap is crossed? Copying halts for that day; your account is not closed and the next decision is yours.

What happens if I change the copy ratio mid-way? Closed trades stay untouched — they belong to their moment; the change affects new trades. This is exactly why having a plan matters: changing the ratio mid-drawdown is re-setting risk without data. Schedule setting changes for periodic reviews instead.

Summary

Three control layers — ratio, daily cap, HWM settlement — together make a manageable risk path. For the concept, read “No fees on losses”.

Three controls to set

• Copy ratio: from capital ratio and risk tolerance
• Daily loss cap: a number that contains one bad day
• HWM settlement rules: fee only on profit above the record
• Set all three before the first trade
• Review the settings after each period

The full control structure: See it.