Risk Management April 8

Level of complacency

None

It is a good idea to lighten up or add hedges in rising complacency

Level of fear

Falling

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?

Yes

Did the account value move more than 2% per day?

No

If yes, lighten up or tighten stops

How much do you stand to lose in the worst case scenario?

Unknown, and not knowing is a problem, not going to do anything about it now

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 down inactive Watch for inactivation followed by activation -> lighten up, hedge

Hedge by futures, options likely very expensive

Reminder:

You cannot time the bottom when it is going down

But you can guess the bottom is in when it is going up