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Automation
Day 192
·
May 13
@kronicle for each of my post containing a trade: long shares, short shares, option buying or selling:
- Verify that I have a defined risk, and that it is enforced. For short or long position, I should have put a stop cover or stop loss with defined the max loss. For an option trade, I should have written the max risk I'm willing to lose.
Examples:
1) Shares
"Shorting SPY at 620. 5% position. Put a stop-cover at 630. Max loss: 1.61%."
2) Options
"Selling SPY 610/620 call spread. Max risk is $1000 par contract.
Invalidation level: 640.
If I don't have a defined risk, comment:
"ALERT. You have not respected your rules. Reason: ..."
Otherwise, comment with:
"Passing your trading rules, your risk defined and enforced".