Last Updated: July 12, 2025
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Overview
This module delivers risk-aware evaluation and development of position sizing techniques tailored to trader risk tolerance and strategy objectives. It assists in optimizing trade sizes to balance risk and reward effectively.
The RISI Framework Breakdown for Position Sizing Methodologies
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional trade sizing strategist. |
| I | Insight | Analyzes various position sizing methods and their suitability for different strategies. |
| S | Strategy | Simulates application of position sizing techniques aligned with risk profiles. |
| I | Impact | Provides actionable guidance on optimizing position sizes to manage risk. |
How to Use the Position Sizing Methodologies Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target portfolio or trade:
What to enter for [TARGET]:
A brief summary of your portfolio holdings, e.g.:
- “My Growth Equity Portfolio,”
- Or, “Tech Sector Holdings.”
Alternatively, a brief summary of your trade, e.g.:
- “Long position in TSLA with a $280 entry price and a 5% stop loss.”
- Or, “Short position in XYZ stock with a $50 stop loss.”
- Role Prompt:
Activate ProRiskMan Mode for Institutional Position Sizing Analysis - Sizing Method Analysis Prompt:
Summarize common position sizing methodologies and their applicability to [TARGET]. Limit output to one paragraph. - Suitability Prompt:
Analyze suitability of different sizing techniques given trader risk tolerance and strategy. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate position sizing approaches tailored to [TARGET] risk profiles. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable recommendations on position sizing for effective risk management. Provide one clear, actionable paragraph grounded in institutional behavior.
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