loss streak circuit breaker

The problem

Traders often struggle with emotional discipline during losing streaks, leading to revenge trading and catastrophic account blowups. Manual risk management usually fails exactly when it is needed most: during the heat of consecutive losses.

What it does

• Analyzes trade history to calculate consecutive loss streaks and resets on wins.
• Monitors for specific rule violations like stop-loss ignoring or unauthorized overrides.
• Triggers tiered circuit breakers ranging from 50% risk reduction to total trading halts.
• Enforces mandatory cooldown periods and trade reviews before resuming activity.
• Generates structured YAML alerts for downstream execution engines to block orders.

Why this beats prompting it yourself

This skill implements a strict state-machine logic that handles edge cases like data gaps with conservative defaults. It prevents the LLM from being "talked out" of a cooldown by an emotional user, ensuring capital preservation through immutable risk tiers rather than vague advice.

Use cases

• Enforcing a 50% position size reduction after two consecutive losses.
• Locking out new entries for 60 minutes after a third loss to prevent revenge trading.
• Escalating to a hard stop when a trader ignores a previously set risk limit.
• Generating post-mortem review summaries before allowing a return to normal risk.

Known limitations

Requires external state persistence (memory, file, or DB) to track streaks between sessions. Does not execute trades directly; it provides the logic and status for an execution layer.