Contingency Management
There is one additional area needed to be considered, in order to ensure financial survival of your trading business. We call this Contingency Management.
Table of Contents
Contingency Management
Contingency Management procedures are documented within my procedures manual, and outline how I will react to ANY potential error or external threat which may impact on my trading results.
The process I use is based upon studies in Threat & Error Management (TEM). The following will provide examples of Contingency Management procedures. Feel free to adapt as required for your own business.
- The process for developing your own procedures is quite straightforward:
- Identify potential errors and threats
- Document a treatment which acts to either avoid the error or threat, or minimize risk should it eventuate.
Contingency Management Procedures
IMP
- Evidence of Illness, Stress or Negativity Impacting Trading Decisions
- External Distraction
- Incorrect Order Entry or Incorrect Fill
- Loss of Connectivity (ISP, Computer, Platform) While in a Trade
- Session or Business Drawdown Limits Hit
- Violation of Rules
All the above Contingency Management Procedures are detailed HERE.