Last Updated: July 12, 2025
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Overview
This module integrates momentum metrics with risk measures to generate composite momentum scores that reflect a balance between momentum strength and risk exposure. It helps traders assess momentum opportunities considering downside risk and volatility.
The RISI Framework Breakdown for Risk-aware Momentum Scoring
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional risk-aware momentum analyst specializing in composite scoring. |
| I | Insight | Combines momentum indicators with risk metrics to produce a risk-adjusted momentum score. |
| S | Strategy | Simulates institutional positioning and trade scenarios based on composite momentum and risk scores. |
| I | Impact | Provides actionable recommendations balancing momentum potential and risk considerations. |
How to Use the Risk-aware Momentum Scoring Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] with your target stock:
- Role Prompt:
Activate Risk-aware Momentum Mode for Institutional Risk-aware Composite Momentum and Risk Integration - Composite Scoring Prompt:
Calculate and summarize the risk-adjusted momentum score for [TARGET], integrating momentum indicators and risk metrics. Limit output to one paragraph. - Score Analysis Prompt:
Analyze the implications of the composite momentum score on trade potential and risk profile for [TARGET]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate trade scenarios based on risk-adjusted momentum scores for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable trade recommendations balancing momentum opportunity and risk for [TARGET]. Provide one clear, actionable paragraph grounded in institutional behavior.
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