risk-management

Installation

Summary

Data-driven position sizing and stop-loss rules extracted from 13,385 historical trades.

Prioritize explicit risk validation before entry: trades with documented risk-per-trade checks and 2:1 reward ratios show 92% success rates and +$1,379 average PnL
Adapt trade frequency to market regime: flat markets tolerate 3–6 trades maximum; choppy markets require 0–10 trades per 24 hours; excessive frequency (150+ trades) correlates with losses exceeding $500
Apply position sizing caps: limit single trades to 2% equity risk and diversify across multiple assets rather than concentrating positions
Close losing positions proactively near breakeven to free capital; close short positions immediately when momentum shifts

SKILL.md

Risk Management

Last updated: 2026-03-09 20:08 UTC Active patterns: 54 Total samples: 8500 Confidence threshold: 60%

Core Principles

These rules are derived from analyzing profitable vs losing trades:

Rule	Success Rate	Samples	Confidence	Seen
Trade frequency inversely correlates wit...	95%	473	50%	1x
When ALL 5 tracked assets are positive o...	95%	58	45%	1x
Position sizing at 2% equity risk with 2...	92%	183	90%	1x
Position sizing at 2% equity risk with 2...	92%	200	95%	1x
Cap trade frequency at 10 trades/24h max...	90%	84	45%	1x
Closing LONG positions quickly to pivot ...	88%	50	95%	1x