Survival rules of top traders: Systematic risk control framework
I. Cognitive foundation
1. The essence of discipline
"The source of excess returns lies not in the accuracy of predictions, but in the control of behavioral error rates — an almost stringent discipline framework is the topological structure for sustained profitability"
2. Risk priority principle
"Risk exposure management constitutes the lifeline of trading, its priority always surpasses the pursuit of profits, and there exists an asymmetric weight relationship between the two"
II. Mechanism construction
Dual decision filtering system
- First layer: Discipline constraint framework (preset trading checklist/position formula/stop-loss threshold)
- Second layer: Emotional monitoring protocol (stress testing/cognitive bias verification/flow state diagnosis)
III. Warning thresholds
- When there are 3 consecutive unplanned operations, a mandatory two-week cooling-off period is initiated
- When account volatility exceeds the historical standard deviation by 2 times, automatically reduce the position to the baseline of 50%
- When the daily emotional entropy value reaches the warning zone, immediately switch to algorithmic custody mode