#AITradingAffectsForex Effective risk management is crucial for optimal AI trading performance. AI trading systems can amplify risks if not properly managed, leading to significant losses. To mitigate this, traders can implement risk management strategies such as: - *Position sizing*: Limiting trade sizes to manage exposure. - *Stop-loss orders*: Automatically closing trades at predetermined loss levels. - *Risk-reward ratios*: Balancing potential gains with potential losses. - *Regular backtesting*: Continuously evaluating and refining the AI trading system. By prioritizing risk management, traders can protect their capital and optimize their AI trading performance.