Exhibit – General Rules

New orders:
Entered with a SL, GTC during trading hours

Existing orders:
SL never widened (beyond initial SL), except shocks (see below)
Profit taking orders GTC 24h

No order is entered without a prior entry in the Trade Log.
No pre- or after-market activity

Gaps in open position:
o Gaps in favor
🙂
o Gaps against me
Take loss through SL, check whether SL and position size was appropriate and if so, accept as part of the bigger plan

Gaps before entry / new positions – Discretionary:
o Gaps in favor
Gaps in such case gaps are usually constructive. If trade keeps moving in favor try adjust SL in direction of trade to control risk, otherwise reduce position size to return to 1R. In any case prioritize trade integrity over risk reduction, i.e. do not tighten SL if not appropriate.
o Gaps against me
Gap should not trigger entry
In other cases, re-consider whether gap is consistent with intended trade set-up and either close or keep position

Shocks, “Acts of God”:
In case disaster hits quickly during market hours, my SL will be triggered either at the intended point or beyond and I’ll be out.
If it hits outside of market hours I will have to analyze and write down an emergency plan for the specific situation into my journal, reason why I do it, how it aligns with the existing plan etc.

How to deal with errors:
Buying/selling too much:
– MUST: reduce exposure by buying/selling erroneous amount or tightening SL (if position already favorable only!)
Buy instead of sell or vice versa:
– MUST: immediate close of position
– SHOULD: flip position
Buy/sell wrong security:
– MUST: immediate close of position
Un-cancelled old order:
– MUST: immediate close of position

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