[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  The Tail That Wags The Dog [@TailThatWagsDog](/creator/twitter/TailThatWagsDog) on x 6158 followers Created: 2025-07-18 17:22:23 UTC Fri Jul XX | Noon Category: What we wrongfully, rarely discuss ... Risk Management. This post is worth your time ... especially if you trade 0DTE. So ... taking the 0DTE Trade I just posted ... let's talk RISK MANAGEMENT. Early in the trade and once I saw I was on the right side, I loaded my Risk Management study (Thinkscript). The study continually plots: a) my entry (green line), and b) a hard stop (red) which I will accept to ensure my average losses do not exceed my average wins. (Look up the formula/concept for "expectancy".) Now, refer to the image below. By the numbers: X. my entry X. my exit X. the Thinkscript that continually plots my entry price on the right margin ... for constant reference, at a glance X. a conservative "hard stop" ... calculated at Entry - (0.5 * ATR) ... and if I'm not already flat for other reasons ... I'll accept that small loss (cost of doing business) X. the reason I exited ... the concomitant intersection of my moving average breakpoint to SELL (white arrow) ... AND ... break even (green line). Note 1: The white trend break arrow lies just below my sell order fill. Note 2: The market has declined substantially since my risk-managed exit. X. the 0DTE Puts study showed a spike in put option premium at the most recent swing high ... just prior to price rolling over. Listen ... all you nubes ... having a deliberate system to manage risk ... like this one ... is absolutely key to both your survival and profitability. There are other systems, but this is just the one that works for me. Also ... this is a choppy market to trade. This is Friday. If you day-trade, you are trading price volatility ... so caveat emptor. While I feel good about my trade management ... I know that I'm out and the market could well spend the rest of the day rallying like there's no tomorrow. Were that to happen and I was willing to take a long trade ... I would enter on the same criteria and manage risk on the same criteria ... doing the same thing over and over and over.  XXXXX engagements  **Related Topics** [fri](/topic/fri) [asset allocation](/topic/asset-allocation) [Post Link](https://x.com/TailThatWagsDog/status/1946259265288872352)
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The Tail That Wags The Dog @TailThatWagsDog on x 6158 followers
Created: 2025-07-18 17:22:23 UTC
Fri Jul XX | Noon
Category: What we wrongfully, rarely discuss ... Risk Management. This post is worth your time ... especially if you trade 0DTE.
So ... taking the 0DTE Trade I just posted ... let's talk RISK MANAGEMENT.
Early in the trade and once I saw I was on the right side, I loaded my Risk Management study (Thinkscript). The study continually plots: a) my entry (green line), and b) a hard stop (red) which I will accept to ensure my average losses do not exceed my average wins. (Look up the formula/concept for "expectancy".)
Now, refer to the image below. By the numbers:
X. my entry
X. my exit
X. the Thinkscript that continually plots my entry price on the right margin ... for constant reference, at a glance
X. a conservative "hard stop" ... calculated at Entry - (0.5 * ATR) ... and if I'm not already flat for other reasons ... I'll accept that small loss (cost of doing business)
X. the reason I exited ... the concomitant intersection of my moving average breakpoint to SELL (white arrow) ... AND ... break even (green line).
Note 1: The white trend break arrow lies just below my sell order fill.
Note 2: The market has declined substantially since my risk-managed exit.
X. the 0DTE Puts study showed a spike in put option premium at the most recent swing high ... just prior to price rolling over.
Listen ... all you nubes ... having a deliberate system to manage risk ... like this one ... is absolutely key to both your survival and profitability. There are other systems, but this is just the one that works for me.
Also ... this is a choppy market to trade. This is Friday. If you day-trade, you are trading price volatility ... so caveat emptor. While I feel good about my trade management ... I know that I'm out and the market could well spend the rest of the day rallying like there's no tomorrow. Were that to happen and I was willing to take a long trade ... I would enter on the same criteria and manage risk on the same criteria ... doing the same thing over and over and over.
XXXXX engagements
Related Topics fri asset allocation