Basically FuturesUnderstand it
A complete protocol sets per-trade exposure, daily and weekly loss limits, maximum positions and correlated exposure, prohibited conditions, and actions when rules are breached. It specifies who or what enforces the limits and how execution mistakes are handled. Rules should be written while calm rather than improvised after losses. A risk protocol does not assure profitability; its role is to limit avoidable decisions and exposure.
A plan might say: stop opening new trades after two rule violations or a defined daily dollar threshold, whichever occurs first. It should also specify the shutdown and review steps.
Watch for this misconception
Treating a daily stop as an excuse to increase size because losses are supposedly capped.
Draft a daily shutdown rule and a next-day restart condition that you can actually verify.
Risk and expectancy tools ↗What makes a risk rule operational?
Check the sources
Hypothetical educational examples. Verify current product specifications and rules before making decisions.