1/3 1/3 1/3 entry
Scaling InMulti
Split entry into 3 equal tranches over time/levels
Source: encyclopedia
1/3 1/3 1/3 exits
Scaling OutLong
Exit 1/3 at each profit milestone
Source: encyclopedia
2:1 reward-to-risk minimum
TargetsMulti
Trade only when target >= 2x stop distance
Source: encyclopedia
ATR multiple stop
StopsMulti
Stop = entry - n*ATR (typically 2-3x ATR)
Source: Wilder
ATR-based sizing Wilder
Position SizingMulti
Size = (Risk%*Equity) / (ATR*multiplier)
Source: Wilder
ATR-multiple target
TargetsMulti
Target = entry + n*ATR (matches stop logic)
Source: Wilder
Annie Duke process-decision framework
BehaviorMulti
Thinking in Bets - separate decision quality from result
Source: Duke
Anti-Martingale
Scaling InMulti
Increase size on wins decrease on losses
Source: Edwards-Magee
Anti-pyramid larger first
Scaling InMulti
Largest entry first then add smaller (Schwager wizards)
Source: Schwager
Beta-adjusted sizing
Position SizingMulti
Size based on stock beta to neutralize market exposure
Source: encyclopedia
Bracket order OCO
StopsMulti
One-cancels-other stop+target on entry
Source: encyclopedia
Break-even stop
StopsMulti
Move stop to break-even after 1R profit
Source: encyclopedia
Calmar ratio
Risk MetricsMulti
Annualized return / max DD
Source: Young 1991
Chandelier exit
StopsTrend
Trail stop = highest_high - n*ATR
Source: Le Beau Lucas
Conditional VaR (CVaR) limit
Multi-TradeMulti
Expected shortfall cap for tail risk
Source: Rockafellar Uryasev
Cooldown period after losses
DD ControlMulti
Sit out 1-2 sessions after consecutive losses
Source: encyclopedia
DCA dollar-cost averaging
Scaling InLong
Equal $ at fixed intervals - lowers avg cost
Source: encyclopedia
Daily loss limit
DD ControlMulti
Hard cap on daily loss - stop trading for the day
Source: prop firm
Donchian channel stop
StopsTrend
Exit on n-day low (Turtle exit)
Source: Turtles
Equity-curve trade-stop
DD ControlMulti
Stop trading when strategy equity curve breaks below MA
Source: Sweeney
Fibonacci extension targets
TargetsMulti
Use 127.2 161.8 261.8% extensions as targets
Source: Fibonacci
Fixed % risk per trade
Position SizingMulti
Risk 0.5-2% of equity per trade (most common pro-trader rule)
Source: Tharp
Fixed R-multiple targets
TargetsMulti
Target = entry + n*R where R = entry-stop
Source: Tharp
Fixed dollar risk per trade
Position SizingMulti
Risk fixed $ per trade (e.g. $500/trade) regardless of vol
Source: Tharp
Fixed fractional Vince
Position SizingMulti
Vince: fixed fraction f of capital per trade
Source: Vince
Flow-state preparation
BehaviorMulti
Steenbarger flow-state framework
Source: Steenbarger
Fractional optimal-f safe
Position SizingMulti
Use 0.1-0.3x optimal-f to control drawdown
Source: Pruitt
Grid trading buy-the-dip
Scaling InMulti
Place buy orders below + sell orders above at fixed intervals
Source: encyclopedia
Half-Kelly fractional
Position SizingMulti
0.5x Kelly preserves ~75% growth with much lower DD
Source: Thorp
Heat metric Tharp
Multi-TradeMulti
Heat = sum of open-trade risks - cap at X%
Source: Tharp
Information ratio
Risk MetricsMulti
Active return / tracking error
Source: encyclopedia
Initial hard stop entry
StopsMulti
Set hard stop immediately on every trade
Source: Tharp
Jensen alpha
Risk MetricsMulti
CAPM alpha measurement
Source: Jensen
Kelly Criterion full
Position SizingMulti
Kelly: f* = (bp-q)/b for binary outcomes
Source: Kelly 1956
Kelly continuous outcomes
Position SizingMulti
Continuous Kelly: f = mu/sigma^2
Source: Thorp
Kelly multiple bets MacLean
Position SizingMulti
Generalized Kelly for multi-asset MacLean-Thorp-Ziemba
Source: MacLean Thorp Ziemba
Kelly with parameter uncertainty
Position SizingMulti
Reduce Kelly to compensate for estimation error
Source: encyclopedia
Leverage Space Portfolio
Position SizingMulti
Vince: optimize across multiple instruments using drawdown as risk
Source: Vince Handbook
MAR ratio
Risk MetricsMulti
Like Calmar over longer period (10y+)
Source: Schwager
Margin utilization cap
Multi-TradeMulti
Max % of margin utilized at any time
Source: prop firm
Martingale scaling
Scaling InMulti
Double down on losers - blowup risk DEBUNKED for trading
Source: encyclopedia
Max drawdown shutoff
DD ControlMulti
Pause strategy at predefined max DD threshold
Source: encyclopedia
Measured move targets
TargetsMulti
Project pattern height as target
Source: Edwards-Magee
Mental stop discretion
StopsMulti
Note stop level mentally - some prefer over hard stops
Source: Schwager
Mentor accountability
BehaviorMulti
Trade plan accountability partner
Source: encyclopedia
Moving average stop
StopsTrend
Exit on close beyond moving average
Source: encyclopedia
Number-of-trades cap
Multi-TradeMulti
Max N concurrent positions (focus)
Source: encyclopedia
Open-ended target
TargetsTrend
Trail-stop only let winners run (Turtles)
Source: Turtles
Optimal-f Vince
Position SizingMulti
Vince: f* maximizing TWR using historical trade dist + biggest loss
Source: Vince Portfolio Management Formulas
Optimal-f danger of overleverage
Position SizingMulti
Optimal-f produces extreme leverage; rarely used at full
Source: Pruitt
Optimal-f formula
Position SizingMulti
f = max f over [0,1] of TWR(f) using past trades
Source: quantpedia
Pain index Becker
Risk MetricsMulti
Pain = avg drawdown over period
Source: Becker
Parabolic SAR stop
StopsTrend
Wilder PSAR as trailing stop accelerating
Source: Wilder 1978
Pivot point targets
TargetsMulti
R1 R2 R3 / S1 S2 S3 from prior day OHLC
Source: Floor pivots
Position correlation cap
Multi-TradeMulti
Cap aggregate risk across correlated positions
Source: encyclopedia
Post-trade review
BehaviorMulti
Review trades for process not just P&L
Source: Steenbarger
Pre-trade checklist
BehaviorMulti
Mandatory checklist before entry
Source: Brett Steenbarger
Process > outcomes mindset
BehaviorMulti
Judge by process not random outcomes
Source: Annie Duke
Profit factor
Risk MetricsMulti
Gross profit / gross loss > 1.5 desired
Source: encyclopedia
Profit-target stop combo
StopsMulti
Exit on either stop OR target whichever first
Source: encyclopedia
Pyramid + trailing stop combo
Scaling InTrend
Pyramid + trail stop on each tranche separately
Source: encyclopedia
Pyramid up winners
Scaling InTrend
Add to winning positions on confirmation (Livermore)
Source: Livermore
Quarter-Kelly fractional
Position SizingMulti
0.25x Kelly very common professional setting
Source: Thorp
Reduce-size after losses
DD ControlMulti
Cut size 50% after X consecutive losses
Source: encyclopedia
Regime-detection halt
DD ControlMulti
Halt strategy when detected regime mismatch
Source: encyclopedia
Risk-parity intra-strategy
Position SizingMulti
Each position contributes equal risk to portfolio
Source: Maillard
Sector exposure cap
Multi-TradeMulti
Limit single sector exposure (typically 25-30%)
Source: encyclopedia
Sharpe ratio measurement
Risk MetricsMulti
Annualized return / annualized vol over rf
Source: Sharpe
Single position cap
Multi-TradeMulti
No single position > X% of capital
Source: encyclopedia
Sleep + nutrition discipline
BehaviorMulti
Physical fitness/sleep impacts P&L
Source: encyclopedia
Sortino ratio downside
Risk MetricsMulti
Like Sharpe but only downside vol denominator
Source: Sortino
Standard deviation move target
TargetsMulti
Target = entry + n*sigma daily move
Source: encyclopedia
Sterling ratio
Risk MetricsMulti
Return / avg of N-largest DDs
Source: encyclopedia
Stop hunt fade trade
StopsMulti
Fade obvious stop runs (liquidity sweeps)
Source: SMC/ICT
Stop run avoidance
StopsMulti
Avoid placing stops at obvious round numbers/swing points
Source: encyclopedia
Strategy rotation on DD
DD ControlMulti
Rotate to different strategy when current in DD
Source: encyclopedia
Stress-test pre-trade
Multi-TradeMulti
Run scenario stress test before adding new trade
Source: encyclopedia
Sweeney equity-curve sizing
Position SizingMulti
Reduce size during DD increase during equity-curve highs
Source: Sweeney
Tharp R-multiple sizing
Position SizingMulti
Tharp: size = (Risk%*Equity) / (Entry-Stop) in R units
Source: Tharp
Tilt management
BehaviorMulti
Recognize tilt and step away
Source: Mark Douglas
Time-based partial exits
Scaling OutMulti
Exit options at 21DTE/50% profit (TastyTrade rule)
Source: tastytrade
Time-of-day target
TargetsMulti
Exit at fixed time regardless (Indian: 3:15 PM)
Source: Yashpal practice
Time-stop exit
StopsMulti
Exit if no profit within X bars
Source: encyclopedia
Tom Basso half-out
Scaling OutLong
Take half off at 1R remaining lets winners run
Source: Basso
Tom Basso position sizer
Position SizingMulti
Tom Basso: size by vol so each position contributes equal risk
Source: Basso book 2019
Trade journal discipline
BehaviorMulti
Log every trade w/ rationale + outcome
Source: Schwager
Trade-equity stop
DD ControlMulti
Stop strategy when equity curve hits drawdown threshold
Source: encyclopedia
Trading plan documented
BehaviorMulti
Written trading plan reduces emotional errors
Source: Douglas
Trail-stop runners
Scaling OutLong
Take partial profits keep runner with trail stop
Source: encyclopedia
Treynor ratio
Risk MetricsMulti
Excess return / beta
Source: Treynor
Ulcer index Martin
Risk MetricsMulti
Sqrt(avg(DD^2)) - tail-sensitive
Source: Martin
VWAP target
TargetsMulti
Use VWAP as natural target/MR level
Source: encyclopedia
VaR-based portfolio cap
Multi-TradeMulti
Daily VaR cap (95% or 99%)
Source: encyclopedia
Value-cost averaging
Scaling InLong
Buy more when below trend less when above (Edleson)
Source: Edleson
Volatility breakout stop
StopsMulti
Exit on close beyond entry +/- n*ATR opposite direction
Source: encyclopedia
Volatility-targeting sizing
Position SizingMulti
Size = TargetVol/RealizedVol * baseSize
Source: encyclopedia
Walk-forward retraining trigger
DD ControlMulti
Retrain when live DD breaches backtest worst
Source: encyclopedia
Weekly loss limit
DD ControlMulti
Hard cap on weekly loss before strategy review
Source: encyclopedia
Wide initial tight trail
StopsTrend
Wide stop initially tightens as trade moves favorably
Source: encyclopedia
Win rate / R-multiple
Risk MetricsMulti
Combined win-rate * avg R-multiple = expectancy
Source: Tharp
An encyclopedia of publicly documented strategies for education. YCAI does not recommend, endorse, or trade any of these. Not investment advice.