Falcon AI includes a suite of built-in risk management tools that derive stop-loss and take-profit levels from the structure of each setup and calculate position sizing automatically for every signal generated. Exact placement rules and parameters are shipped to active subscribers via the Settings Vault.
Falcon AI derives stop-loss and take-profit levels from the structure of the setup itself — not from fixed ticks, rigid R:R ratios, or arbitrary ATR multiples. The stop sits beyond the level that proves the trade wrong (the order block / structural swing that defines the setup), and the target maps to the setup's next structural objective. When the structure is tight, the risk is tight; when it's wide, the signal demands more room — or doesn't fire at all.
The SL zone renders as a red shaded band on the TradingView chart, and the TP target as a green shaded band. Defaults can be tuned in the indicator's input panel under Risk Management. Falcon AI runs as a TradingView indicator (signals + webhook) and, on Elite, as a native NinjaTrader 8 strategy that auto-executes with no webhook or relay — on Elite, those same structure-based stop and target levels are placed directly as native NinjaTrader orders. Active subscribers receive the exact placement rules and parameters in the Settings Vault — pre-tuned per tier and ready to trade, nothing to set up yourself.
Falcon AI displays a suggested position size for each signal based on the configured account size and maximum risk percentage per trade. The calculation uses the distance from entry to stop-loss and the tick value of the traded contract.
The standard position sizing formula applied is:
Example calculation for a Micro E-mini Nasdaq (MNQ) signal:
| Variable | Value |
|---|---|
| Account Size | $25,000 |
| Risk Per Trade | 1% ($250) |
| Contract | MNQ (Micro E-mini Nasdaq) |
| MNQ Tick Size | 0.25 index points |
| MNQ Tick Value | $0.50 per tick |
| Entry Price | 19,850.00 |
| Stop-Loss Price | 19,800.00 |
| Stop Distance | 50 points = 200 ticks |
| Risk Per Contract | 200 ticks × $0.50 = $100 |
| Suggested Position Size | $250 ÷ $100 = 2 contracts |
Default risk settings in the Falcon AI indicator are set to 1% per trade. This can be adjusted in the indicator settings panel. We strongly recommend never risking more than 2% of account capital on a single signal, regardless of the confluence score.
