risk-management
Risk Management establishes a survival-first framework for protecting trading capital through drawdown thresholds, daily and weekly loss limits, and concentration controls across tokens and strategies. It includes automated circuit breakers triggered by consecutive losses or volatility spikes, recovery math tables, and crypto-specific safeguards for smart contract, rug pull, and MEV risks.
Risk Management sets up portfolio-level controls including drawdown limits, daily loss caps, and circuit breakers to protect your trading account.
AI-generated summary based on this skill's SKILL.md
Decision gist · record as of 2026-06-24
Risk Management sets up portfolio-level controls including drawdown limits, daily loss caps, and circuit breakers to protect your trading account. Risk Management establishes a survival-first framework for protecting trading capital through drawdown thresholds, daily and weekly loss limits, and concentration controls across tokens and strategies. It includes automated circuit breakers triggered by consecutive losses or volatility spikes, recovery math tables, and crypto-specific safeguards for smart contract, rug pull, and MEV risks.
Use it when
- Risk Management calculates and monitors maximum drawdown and recovery requirements by tracking peak-to-trough losses and the percentage.
- Risk Management implements automated circuit breakers for loss and volatility that halt trading when consecutive losses occur or volatility.
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agiprolabs/claude-trading-skills/risk-management · repository language: Python
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Frequently asked questions
AI-generated answers based on this skill's SKILL.md and metadata
What is crypto portfolio risk management in Risk Management?
Risk Management establishes a survival-first framework protecting trading capital through drawdown thresholds, daily and weekly loss limits, and concentration controls across tokens and strategies. It includes automated circuit breakers triggered by consecutive losses or volatility spikes, recovery math tables, and crypto-specific safeguards for smart contract, rug pull, and MEV risks.
How do drawdown limits and recovery requirements work?
Risk Management calculates and monitors maximum drawdown and recovery requirements by tracking peak-to-trough losses and the percentage gains needed to return to previous highs. Recovery math tables show that a 50% drawdown requires a 100% gain to recover. The framework sets portfolio-level thresholds and triggers alerts or automated halts when drawdown limits are breached.
What are circuit breakers for trading in Risk Management?
Risk Management implements automated circuit breakers for loss and volatility that halt trading when consecutive losses occur or volatility spikes beyond configured thresholds. Daily loss stop rules and trading halt rules prevent cascading losses during market stress. These breakers protect capital by enforcing mandatory cooling-off periods before resuming positions.
How does position sizing work for high-risk assets?
Risk Management sizes positions for high-risk assets like PumpFun tokens through concentration limits and exposure controls that prevent over-allocation to any single token or strategy. Meme token exposure limits and smart contract risk allocation ensure that even total loss of a single position stays within acceptable portfolio drawdown thresholds.
How does Risk Management handle correlation and concentration?
Risk Management manages concentration and correlation across crypto positions by enforcing limits on how much capital flows to correlated assets or single tokens. It monitors portfolio-wide exposure to reduce systemic risk and ensures diversification across strategies, reducing the impact of any single position failure on total capital.
What risk metrics and dashboards does Risk Management provide?
Risk Management provides a risk metrics dashboard tracking value at risk (VaR), expected shortfall (CVaR), maximum drawdown, daily and weekly loss totals, concentration ratios, and correlation matrices. These metrics enable real-time capital preservation strategy adjustments and inform decisions on position scaling, circuit breaker triggers, and recovery timelines.
SKILL.md
Rendered from the published skill. Quoted content, verbatim.
Risk Management
Portfolio-level risk controls for crypto and Solana trading. This skill provides frameworks for drawdown management, exposure limits, circuit breakers, and crypto-specific risk considerations.
Risk Management Hierarchy
Every decision must respect this priority order:
- Survival — Never risk account ruin. No single trade, day, or week should threaten your ability to continue trading.
- Capital preservation — Protect what you have. Losses compound geometrically; recovery requires outsized gains.
- Growth — Only after survival and preservation are secured, pursue returns.
Violating this hierarchy (chasing growth at the expense of survival) is the primary cause of account blowups.
Portfolio-Level Controls
1. Maximum Drawdown Limits
Halt trading when portfolio drawdown from equity peak reaches a threshold:
| Account Type | Max Drawdown | Action |
|---|---|---|
| Conservative | -15% | Full stop, review all strategies |
| Moderate | -20% | Full stop, reduce to minimum size on recovery |
(truncated - see the full file via the links below)
File tree — 6 files
skills/risk-management/SKILL.md
skills/risk-management/references/circuit_breakers.md
skills/risk-management/references/drawdown_management.md
skills/risk-management/references/exposure_limits.md
skills/risk-management/scripts/drawdown_analyzer.py
skills/risk-management/scripts/risk_dashboard.py
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