risk-management

Data-driven position sizing and stop-loss rules extracted from 13,385 historical trades. Prioritize explicit risk validation before entry: trades with documented risk-per-trade checks and 2:1 reward ratios show 92% success rates and +$1,379 average PnL Adapt trade frequency to market regime: flat markets tolerate 3–6 trades maximum; choppy markets require 0–10 trades per 24 hours; excessive frequency (150+ trades) correlates with losses exceeding $500 Apply position sizing caps: limit single trades to 2% equity risk and diversify across multiple assets rather than concentrating positions Close losing positions proactively near breakeven to free capital; close short positions immediately when momentum shifts

INSTALLATION
npx skills add https://github.com/0xhubed/agent-trading-arena --skill risk-management
Run in your project or agent environment. Adjust flags if your CLI version differs.

SKILL.md

Risk Management

Last updated: 2026-03-09 20:08 UTC

Active patterns: 54

Total samples: 8500

Confidence threshold: 60%

Core Principles

These rules are derived from analyzing profitable vs losing trades:

Rule

Success Rate

Samples

Confidence

Seen

Trade frequency inversely correlates wit...

95%

473

50%

1x

When ALL 5 tracked assets are positive o...

95%

58

45%

1x

Position sizing at 2% equity risk with 2...

92%

183

90%

1x

Position sizing at 2% equity risk with 2...

92%

200

95%

1x

Cap trade frequency at 10 trades/24h max...

90%

84

45%

1x

Closing LONG positions quickly to pivot ...

88%

50

95%

1x

Trade frequency must be inversely propor...

88%

109

45%

1x

Multi-timeframe bearish alignment (15m, ...

88%

383

99%

2x

In uniformly bearish markets, 'low-sever...

85%

49

85%

1x

Validation checks passing ('validation p...

85%

200

95%

1x

High trade frequency (189-200 trades/24h...

85%

389

95%

1x

When ALL 5 tracked assets are positive o...

85%

113

95%

1x

Position sizing at 2% equity risk with 2...

80%

49

85%

1x

Self-reflective position management (jou...

80%

48

80%

1x

Forum/social sentiment filtering provide...

80%

24

95%

1x

Closing SHORT positions 'to lock in gain...

78%

48

85%

1x

Low leverage (2x) on SHORT positions wit...

75%

48

85%

1x

Position sizing at 2% equity risk with 2...

75%

172

90%

1x

Low trade frequency (<40 trades/24h) pre...

75%

48

95%

1x

In uniformly bearish markets, SHORT-bias...

75%

3

41%

1x

Avoid momentum-following strategies in m...

75%

33

95%

1x

Self-reflective position management (rec...

75%

27

95%

1x

Contrarian strategies underperform in mi...

70%

16

82%

1x

Cap trade frequency at 15 trades/24h max...

70%

113

95%

1x

Cap trade frequency at 16 trades/24h max...

67%

86

65%

1x

In mixed/low-volatility markets (daily m...

67%

146

95%

1x

Self-reflective position management (jou...

65%

65

45%

1x

Multi-timeframe bearish alignment (15m, ...

50%

337

90%

1x

High trade frequency (165-172 trades/24h...

50%

337

90%

1x

High trade frequency (183 trades/24h) ca...

50%

366

90%

1x

In uniformly bearish markets with mild d...

50%

6

57%

1x

Validation checks passing ('all checks p...

41%

998

94%

2x

Closing positions due to 'conflicting ti...

35%

20

80%

1x

Trade frequency inversely correlates wit...

33%

86

65%

1x

Cutting small losses quickly (-$0.14 to ...

30%

131

90%

1x

Cutting small losses quickly (-$38 on SO...

30%

147

95%

1x

Contrarian LONG entries in bullish marke...

30%

6

62%

1x

Closing positions 'to reduce concentrati...

30%

708

99%

3x

Closing positions 'to reduce concentrati...

25%

165

90%

1x

Validation checks passing ('all checks p...

25%

501

95%

1x

High concentration warnings (127% of equ...

25%

166

95%

1x

Multi-timeframe alignment (15m, 1h, 4h) ...

15%

298

50%

1x

Low trade frequency (<20 trades/24h) in ...

15%

25

95%

1x

Position sizing at 2% equity risk with 2...

15%

166

95%

1x

2% equity risk with 2:1 reward ratio con...

15%

58

45%

1x

2% equity risk with 2:1 reward ratio FAI...

10%

31

95%

1x

Cutting small losses quickly (-$0.01 to ...

5%

152

90%

1x

Position sizing at 2% equity risk with 2...

0%

334

50%

1x

High leverage (4x-5x) with 'optimal' ris...

0%

132

50%

1x

Self-reflective position management (jou...

0%

62

65%

1x

Low-frequency LONG entries in a bearish ...

0%

4

43%

1x

Contrarian LONG entries in uniformly bea...

0%

9

53%

1x

Skill-aware validation frameworks (2% eq...

0%

27

90%

1x

Contrarian LONG entries in bearish marke...

0%

11

67%

1x

Top Risk Rules

Trade frequency inversely correlates with performance in bullish markets: 8 trades = $0.00, 30-34 trades = -$46 to -$51, 120-166 trades = -$41 to -$135

  • Success rate: 95%
  • Based on 473 observations
  • Confidence: 50% (seen 1 times)
  • First identified: 2026-01-28

When ALL 5 tracked assets are positive over 24h with gains exceeding +5%, immediately halt ALL SHORT entries regardless of any lower-timeframe signals, validation checks, or risk calculators.

  • Success rate: 95%
  • Based on 58 observations
  • Confidence: 45% (seen 1 times)
  • First identified: 2026-03-04

Position sizing at 2% equity risk with 2:1 reward ratio SUCCEEDS when agent maintains SHORT bias in bearish markets and uses validation to confirm market direction alignment.

  • Success rate: 92%
  • Based on 183 observations
  • Confidence: 90% (seen 1 times)
  • First identified: 2026-01-31

Position sizing at 2% equity risk with 2:1 reward ratio SUCCEEDS when market direction aligns with position bias and agent maintains high trade frequency (150-200/24h).

  • Success rate: 92%
  • Based on 200 observations
  • Confidence: 95% (seen 1 times)
  • First identified: 2026-02-01

Cap trade frequency at 10 trades/24h maximum in strongly bullish markets when agent directional bias is uncertain. qwen35_skill_aware's 7 trades (+$250.52) vs gptoss_agentic's 28 trades (-$435.19).

  • Success rate: 90%
  • Based on 84 observations
  • Confidence: 45% (seen 1 times)
  • First identified: 2026-03-04

General Guidelines

  • Never risk more than 2% of equity on a single trade
  • Use stop-losses on every position
  • Reduce position size in high volatility regimes
  • Don't add to losing positions

Confidence Guide

Confidence

Interpretation

90%+

High confidence - strong historical support

70-90%

Moderate confidence - use with other signals

60-70%

Low confidence - consider as one input

<60%

Experimental - needs more data

This skill is automatically generated and updated by the Observer Agent.

BrowserAct

Let your agent run on any real-world website

Bypass CAPTCHA & anti-bot for free. Start local, scale to cloud.

Explore BrowserAct Skills →

Stop writing automation&scrapers

Install the CLI. Run your first Skill in 30 seconds. Scale when you're ready.

Start free
free · no credit card