Third Candle

Paper trading risk management

Risk mandates belong before the trade, not after the loss.

Third Candle makes paper trading a structured review process. The user defines risk, setup, invalidation, approval, and journal fields before order simulation, then reviews whether the plan was followed.

Review risk mandate workflow

Risk controls

  • Max risk per trade, max daily loss, stop reference, session eligibility, and approval state before paper order submission.
  • Cooldowns, daily readiness, Thumb Check grading, and process reminders for revenge-risk, FOMO-risk, overconfidence, and distraction.
  • Audit events for plan draft, approval, submit, cancel, simulated fill, stop update, target update, and review.

Boundaries

  • Paper mode must remain visually unmistakable and should not be confused with live broker execution.
  • Live trading is not enabled by default and requires broker setup, risk limits, compliance acknowledgment, kill switch, and audit logs.
  • Risk controls reduce process errors but do not make trading safe or profitable.
Day trading disciplineTrading journalTrading research platform Platform home Research Desk

Third Candle is a paper-first trading research and review platform. Content is educational and process-based; it is not personalized investment advice, does not promise profits, and does not enable live trading by default.