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Post-Loss Cooldown

Force a pause after a loss to prevent revenge trades

Traders often report that their next trade after a loss is lower quality and more emotional. This recipe enforces a short cooldown and optionally reduces size after a loss.

House RecipePersonal3 min setup

INGREDIENTS

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PROMPT

Create a guardrail called "Post-Loss Cooldown". When a trade closes with loss >= $50 or >= 0.5R: start a 10-minute cooldown where you do not generate new trade-entry suggestions. After cooldown, for the next 2 trades suggest risk-per-trade = usualRisk * 0.5. Ask me a short pre-trade checklist before re-enabling entries.

Pain point

"Make it back" thinking is a common precursor to revenge trading. A forced pause interrupts the loop.

Triggers

  • A trade closes red (realized loss)
  • Optional: stop-loss hit event

Conditions

  • Only if loss magnitude >= minLossToTriggerUSD OR minLossToTriggerR
  • Optional: stricter rules after first loss of the day

Actions

  • Start a cooldown timer (no new trades suggested)
  • Push a checklist: "Am I trading the plan or the emotion?"
  • Suggest reducing risk-per-trade for the next N trades

Parameters (defaults)

  • minLossToTriggerUSD: 50
  • minLossToTriggerR: 0.5
  • cooldownMinutes: 10
  • reducedRiskMultiplierNextTrades: 0.5
  • reducedRiskTradesCount: 2

Examples

  • After a -0.8R loss, block new entry templates for 10 minutes and halve risk for the next 2 trades.
  • After the first loss of the day, require a 60-second "trade plan re-check" prompt.
Tags:#trading#day-trading#revenge-trading#tilt#risk-management