Risk Management Jun 10
Level of complacency
None
It is a good idea to lighten up or add hedges in rising complacency
Level of fear
None
It is a good idea to lighten up in rising fear
Did you craft plans?
Yes
Did you set up trade alerts and entry / exit triggers and follow them?
Yes
Did you do regular breathing exercise?
No
Did the account value move more than 2% per day?
Yes
If yes, lighten up or tighten stops
How much do you stand to lose in the worst case scenario?
5%
Is it more than 5% of the account value?
No
After losing 5% (realised or unrealised), FOMO and short circuit is highly likely, avoid them by not losing more
If "All TFs Down" is active, add hedges
Watch for change in trends in all TFs -> lighten up, hedge
Reminder:
You cannot time the bottom when it is going down
But you can guess the bottom is in when it is going up