Risk Management & Psychology
Browse Topics
Portfolio‑Level Sizing: Correlation‑Adjusted Lots and Risk Budgeting Across Strategies
Practical guide to sizing correlated FX strategies: compute marginal risk, adjust lot sizes using covariance, and implement risk budgets to control drawdowns.
Routines, Burnout Prevention and Peak Performance for Active Traders
Proven routines and recovery playbooks for active traders: avoid burnout, sharpen decision‑making, and sustain peak performance with sleep, HRV tools and journaling.
Scaling Into and Out of Positions: Practical Rules to Cut Slippage & Bias
Rules for scaling into/out of FX positions to reduce slippage and drawdown while removing emotional bias. Tranche sizing, ATR lots, exit ladders and rules.
Drawdown Control Frameworks: Stop‑Loss Architecture, Equity Gates & Recovery Plans
Practical frameworks for stop-loss design, equity gates and recovery plans that limit drawdowns and rebuild conviction without reckless sizing.
Journaling and Behavioral Metrics: Using Data to Reduce Bias and Strengthen Discipline
Use structured trading journals and behavioral metrics to identify bias, enforce rules and improve discipline. Templates, KPIs and recommended tools included.
Pre‑Trade Checklists That Prevent Catastrophes — A Practical Daily Template
Daily pre-trade checklist for FX traders: reduce human error, enforce risk limits, and manage psychology with a practical template to prevent catastrophic losses.
Protecting Capital During Black‑Swan Events: Tail Risk Hedging for FX Traders
Practical tail‑risk hedges for FX traders: options, overlays, sizing rules and a step‑by‑step playbook to limit catastrophic drawdowns and preserve capital.
Applying the Kelly Criterion to Currency Trading — Pros, Cons and Practical Limits
Explore the Kelly Criterion for FX: formula, fractional Kelly, correlation and drawdown limits, plus practical rules and a step‑by‑step implementation checklist.
Hybrid Sizing: Blending Kelly with Volatility‑Capped Limits — A Reproducible Case Study
Python case study with data and code: a hybrid sizing method that blends fractional Kelly with a volatility cap to limit drawdowns and stabilize returns.
Automated Drawdown Alarms and Trade Suspension Rules for HFT & Retail Bots
Practical rules and checklist to add automated drawdown alarms, kill‑switches and trade‑suspension policies for HFT and retail trading bots.
Dynamic Position Sizing: From Fixed‑Fraction to Volatility‑Parity for Forex Traders
Practical FX position‑sizing: fixed‑fraction, volatility‑parity, ATR scaling and Kelly hybrids—step‑by‑step rules, examples and drawdown controls.
Cognitive Biases That Kill Trades and How to Build Rules to Counter Them
Identify biases that kill trades and apply rule‑based defenses: pre‑trade checklists, strict sizing, trade journaling and automatic stop‑losses.