Streak-Based Risk Management

Entry Logic

• Not applicable. This is a risk management model.

Exit Logic

• Not applicable. This is a risk management model.

Stop Loss Structure

• Not applicable. This is a risk management model.

Risk Management Framework

• Risk per trade: Increase risk after a winning streak. Decrease risk after a losing streak.
• Maximum daily loss limit: 3% of starting daily equity.
• Maximum weekly loss limit: 6% of starting weekly equity.
• Maximum drawdown allowed: 20% from peak equity.
• Risk-reward ratio requirement: Minimum 1.5R on all trades.

Position Sizing Model

• Sizing approach: After 3 consecutive wins, increase risk by 50%. After 3 consecutive losses, decrease risk by 50%.
• Volatility adjustment: None.
• Conviction sizing: Not applicable.
• Scaling in/out: Not applicable.

Trade Filtering

• Not applicable. This is a risk management model.

Context Framework

• Not applicable. This is a risk management model.

Trade Management Rules

• Not applicable. This is a risk management model.

Time Rules

• Not applicable. This is a risk management model.

Setup Classification

• Not applicable. This is a risk management model.

Market Selection Criteria

• Instrument requirements: Not applicable.
• Volume requirements: Not applicable.
• Volatility requirements: Not applicable.

Statistical Edge Metrics

• Not applicable. This is a risk management model.

Failure Conditions

• Strategy fails in choppy markets with no clear winning or losing streaks.
• Avoid using with strategies that have a near 50% win rate.

Psychological Rules

• Be willing to press your advantage during a winning streak.
• Be willing to pull back during a losing streak.

Advanced Components

• Not applicable. This is a risk management model.

Location

• Strongest in trending strategies.
• Weakest in mean-reversion strategies.