A recovery from a large loss requires a disproportionately larger gain. Every rule below exists to keep that math from ever becoming the problem.
Every position is sized as a fixed fraction of risk capital, not a fixed number of shares — so no single idea can do outsized damage.
Stop levels are set before entry, not adjusted emotionally once a position moves against us.
Portfolio-level caps prevent any single sector, theme, or correlated basket of positions from dominating outcomes.
Sustained drawdowns beyond a defined threshold trigger a formal strategy review — not a silent hope for reversion.
Position sizing adapts to prevailing market volatility rather than staying static across calm and turbulent regimes.
Drawdowns are shown on the Strategies page alongside gains — the losing periods are not edited out of the record.
A 10% loss needs an 11% gain to break even. A 50% loss needs a 100% gain. That asymmetry is why avoiding large drawdowns is treated as the primary objective, not a secondary one — read more in our Insights article on understanding drawdowns.