Risk Management May 13
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?
Sometimes
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?
Clean slate after OPEX
Is it more than 5% of the account value?
Yes
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
TFs briefly active, watch for re-activation -> lighten up, hedge
Take profits on the way up
Reminder:
You cannot time the bottom when it is going down
But you can guess the bottom is in when it is going up