{"id":"risk-max-drawdown","category":"risk_management","title":"Maximum Drawdown Rules","summary":"Hard stops at the portfolio level before individual position stops — protect survival.","trigger":{"always":false,"sectors":[],"tickers":[],"regimes":["high_vol","trending_bear"]},"ttl_hours":168,"content":{"portfolio_level_stops":{"monthly_hard_stop":"If portfolio down 10% in any rolling 30 days → go to 100% cash, review, restart","weekly_warning":"Portfolio down 5% in 5 trading days → reduce all positions 50%","daily_circuit_breaker":"Portfolio down 3% in a single day → no new trades today"},"drawdown_recovery_rules":["Do not increase position size while in drawdown — the psychology trap","Wait for 2 consecutive profitable weeks before returning to full sizing","Paper-trade for 5 sessions after a hard stop before returning to live trading"],"math_of_losses":{"10pct_loss_needs":"11.1% gain to recover","20pct_loss_needs":"25% gain to recover","30pct_loss_needs":"42.9% gain to recover","50pct_loss_needs":"100% gain to recover"},"verdict":"The purpose of hard stops is to preserve capital for when conditions improve. A 10% drawdown from a bad run is recoverable. A 50% drawdown requires doubling your money just to break even."}}