risk-manager_skill

Overview

This skill monitors portfolio risk, R-multiples, and position limits to protect capital and improve trade consistency. It creates hedging strategies, computes trade expectancy, and implements stop-loss rules. Use it proactively to assess risk, track trades, and enforce limits across portfolios.

How this skill works

It ingests trade history and portfolio holdings, converts P/L into R-multiples, and computes expectancy, VaR, and position size recommendations. Correlation and beta analysis identify concentration risks while Monte Carlo stress tests simulate worst-case drawdowns. The skill then outputs hedging suggestions, stop and take-profit levels, and a risk dashboard for ongoing monitoring.

When to use it

• Before deploying new capital or sizing positions
• Regular portfolio risk reviews and weekly trade audits
• Designing or validating hedging strategies
• Stress testing portfolios under extreme market moves
• Enforcing risk limits and stop-loss discipline

Best practices

• Track every trade in R-multiples to maintain objective performance measurement
• Define a clear per-trade risk (1R) and stick to position sizing rules
• Use expectancy and win-rate data to set realistic position sizes
• Monitor correlations and avoid concentration by sector or factor
• Combine systematic stops with targeted hedges; re-evaluate after large moves

Example use cases

• Generate a position-sizing plan using Kelly or fixed-percentage methods
• Produce an R-multiple tracking spreadsheet and monthly expectancy report
• Run Monte Carlo simulations to estimate maximum drawdown and tail risk
• Create hedging recommendations with options or futures to limit downside
• Build a correlation matrix and rebalance rules to reduce concentration risk