Trading

Risk Management Review

πŸ”₯ 88 trend score πŸ‘ 0 uses
#trading#risk-management#portfolio#position-sizing
Category
Trading
Trend Score
88/100
Total Uses
0
Prompt Template
Review my current trading portfolio for risk concentration and sizing errors:

PORTFOLIO:
[List your positions: ticker, direction, size in $, stop level]
Example:
- Long NVDA: $10,000, stop -8%
- Long AMD: $8,000, stop -7%
- Long SMCI: $5,000, stop -10%
- Short TLT: $6,000, stop +5%
- Total account: $50,000

Analyze:
1. CONCENTRATION RISK: Correlated positions (same sector, same macro factor exposure, same earnings date cluster)
2. MAXIMUM DRAWDOWN SCENARIO: If worst case hits simultaneously across correlated positions, what's the % loss?
3. POSITION SIZING ERRORS: Flag any position where risk per trade exceeds [2%] of account
4. KELLY CRITERION CHECK: Based on my stated win rate [e.g. 55%] and avg win/loss ratio [e.g. 1.8:1], what's the optimal position size per trade?
5. RECOMMENDATIONS: Specific position adjustments to reduce correlated exposure and right-size outliers
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