drawdown recovery planner

The problem

Traders often react to drawdowns by increasing risk to "win it back" quickly, leading to catastrophic account blowups. Emotional decision-making after losses prevents the disciplined execution required to return to the high-water mark.

What it does

• Calculates drawdown severity based on equity highs and classifies recovery levels from Minor to Critical.
• Generates a temporary risk-management framework with reduced position sizing and halved daily loss limits.
• Restricts trading to high-confidence A+ setups and enforces strict review requirements for every trade.
• Defines objective, measurable milestones that must be met before risk exposure is gradually restored.

Why this beats prompting it yourself

This skill enforces a mathematical approach to recovery that removes emotional bias. It provides specific risk multipliers and position limits tailored to the depth of the drawdown, ensuring the recovery plan is structured and measurable rather than vague.

Use cases

• Creating a structured plan after a 10% account drawdown to prevent further bleeding.
• Establishing a "cooling off" period with 25% risk after a severe losing streak.
• Defining clear exit criteria to transition from simulation back to live trading.
• Building a daily review checklist specifically for adherence to recovery rules.