Manual
Risk Management
Position sizing, stop behavior, and drawdown recovery rules.
Hard Rules
- No single position should risk more than 5% of account value
- 1-2% maximum risk is normal sizing
- Always have a defined exit before entry
Stop Loss Philosophy
- Mental stops are acceptable for experienced traders
- Hard stops on volatile days or news events
- Time-based stops for theta decay positions
Recovery Protocol
When drawdown exceeds 10%:
- Reduce position sizes by 50%
- Focus only on highest conviction setups
- Review recent trades for pattern errors
- Return to normal sizing once all issues have been addressed honestly and mechanics are consistent