Risk Management May 28

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?

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?

To be calculated on the clean slate

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