Quick answer: a bot allocation should be sized from your maximum acceptable loss and expected drawdown. If you can tolerate losing $500 and the bot could draw down 50%, the experiment should be no larger than about $1,000.
Bot Risk Calculator
Enter liquid investable assets, maximum acceptable loss, expected worst-case drawdown, and target monthly return. The tool estimates a suggested experiment size and shows how the risk changes.
Interpretation: the suggested size is not a recommendation to invest. It is a stress-test. If the output feels too small, that is the calculator doing its job.
Why Size From Loss Instead of Return?
Return-first thinking asks, "How much can this make?" Risk-first thinking asks, "What happens if the bot has a bad month?" For high-risk automated trading, the second question is more useful because drawdowns arrive before explanations.
The calculator uses a simple formula: maximum acceptable loss divided by possible drawdown. If your loss limit is $500 and your drawdown assumption is 50%, a $1,000 experiment would hit that loss limit in a severe scenario.
What Drawdown Should You Assume?
25% drawdown
Still risky, but assumes the bot or exchange setup avoids deeper losses. Good for a conservative stress test only if leverage is low.
50% drawdown
A more honest stress test for speculative crypto automation. Painful, but not impossible in volatile conditions.
100% loss
Use this if the platform, custody, leverage, or API setup could plausibly fail completely.
Risk-Adjusted Scenario: What the New Controls Mean
The expanded calculator now includes losing months, monthly fee or funding drag, tax reserve, and a bad-month loss assumption. This makes the output less exciting and more useful. A bot can show strong gross months while still producing a much weaker after-fee, after-tax, after-drawdown experience.
Use the 12-month modeled value as a stress scenario, not a forecast. If the model only works when every month is profitable, the experiment is too fragile.
Monthly Return Targets: Math vs Reality
A 10% monthly return sounds simple on a calculator. In real trading, it is an aggressive assumption. The CFTC has specifically warned about AI trading systems and bot claims that promise high or guaranteed returns. Treat high monthly targets as speculative, not income planning.
If the bot experiment is small enough, a positive month can be interesting without becoming life-changing. That is healthy. The moment the target return has to solve a rent, debt, or lifestyle problem, the risk has probably moved from experiment to dependence.
How Aurum Fits the Calculator
Aurum is relevant here because UBI.quest has documented it more closely than other automated trading platforms. But the calculator still treats it as high risk. If someone tries Aurum, the more disciplined path is to size the experiment first, read the review second, and only then decide whether the platform deserves a small test.
Use the calculator before opening Aurum
Read the review and evidence limits before visiting the platform. The external link is sponsored, and past screenshots are not forecasts.
Checklist After the Calculator
- Write down the maximum dollar loss.
- Decide whether the experiment size is emotionally survivable.
- Use trade-only API permissions where possible.
- Set a review date and a stop condition.
- Track actual withdrawals separately from dashboard profit.