Risk Management
Definition
The process of identifying, assessing, and controlling financial risks. Includes position sizing, stop losses, and portfolio diversification.
Example
Never risking more than 2% of your portfolio on a single trade is a common risk management rule.
How Gilito AI Uses It
Stop losses, max drawdown limits, and walk-forward validation are built into the strategy evaluation pipeline. The Gilito Score explicitly penalizes high-risk strategies.