Last Updated: July 12, 2025
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Overview
This module delivers risk-aware development of position sizing and risk control strategies tailored for event-driven trading scenarios. It helps protect capital and manage exposure during volatile event periods.
The RISI Framework Breakdown for Risk Management and Position Sizing
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional risk and position sizing analyst. |
| I | Insight | Analyzes risk factors specific to event-driven trades and appropriate sizing approaches. |
| S | Strategy | Simulates position sizing and risk control tactics adapted to event scenarios. |
| I | Impact | Provides actionable guidance on managing exposure and protecting capital during events. |
How to Use the Risk Management and Position Sizing Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] with your target stock:
- Role Prompt:
Activate ProEventTrade Mode for Institutional Risk Management - Risk Factor Analysis Prompt:
Summarize risk factors and sizing considerations for event-driven trades on [TARGET]. Limit output to one paragraph. - Sizing Strategy Prompt:
Analyze position sizing techniques suitable for event-driven trading scenarios. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate risk control and position sizing tactics tailored to event volatility. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable risk management and position sizing recommendations. Provide one clear, actionable paragraph grounded in institutional behavior.
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