Risk Management May 16

Level of complacency

Rising

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?

Sometimes

Did you do regular breathing exercise?

Yes

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?

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

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