Contingency Management Procedures

Table of Contents

• Contingency Management Procedures
  • Sources of Threat & Error:

Contingency Management Procedures

Sources of Threat & Error:

1. Evidence of Illness, Stress or Negativity Impacting Trading Decisions
2. External Distraction
3. Incorrect Order Entry or Incorrect Fill
4. Loss of Connectivity (ISP, Computer, Platform) While in a Trade
5. Session or Business Drawdown Limits Hit
6. Violation of Rules

Evidence of Illness, Stress or Negativity Impacting Trading Decisions

1. If I have live trades, immediately either:
   • a) Close the trades and cancel any working orders; or
   • b) If positions are in profit, confirm appropriate stop (not < breakeven) and target orders, and walk away.
2. If I have working orders, cancel them.
3. Record details of the occurrence, for consideration during the post-session review.
4. Consider the need for a break, or a relaxation or recovery session, or for cancellation of the remainder of the session.

External Distraction (which can’t be ignored)

1. If I have live trades, immediately either:
   • a) Close the trades and cancel any working orders; or
   • b) If positions are in profit, confirm appropriate stop (not < breakeven) and target orders.
2. If I have working orders, cancel them.
3. Deal with the distraction.
4. Record details of the occurrence, as soon as possible, for consideration during the post session review.
5. Consider the need for a break, or a relaxation or recover session prior to restart.

Incorrect Order Entry or Incorrect Fill

1. Immediately cancel the order if it hasn’t been filled.
2. If the order is filled, rapidly assess the situation.
   • a) If analysis indicates potential for the market to move rapidly against the position, EXIT.
   • b) Else set an aggressive stop to minimize loss and manage the position to try to work a profitable exit.
3. Record details of the error, for consideration during the post-session review.
4. Contact broker immediately if error is due to a broker-error (incorrect fill).
5. Consider the need for a break, or a relaxation or recovery session.

Loss of Connectivity (ISP, Computer, Platform) While in a Trade

1. Close any open trades and pending orders via whichever of these means is available and quickest:
   • a) Connecting to the platform via a backup computer/mobile.
   • b) Connect to the broker online via their web platform.
   • c) Immediately contact the broker via phone and/or live chat.
2. Resolve the issue if possible and continue with the session.
3. If not continuing, conduct the post-session routine.

NOTE:

All orders placed into the platform should have an attached stop and target order.

Session or Business Drawdown Limits Hit

1. Immediately exit all trades.
2. Consider the need for a break, or a relaxation or recovery session.
3. Complete the Post-Session routine.

Violation of Rules

1. If I violate any part of my trading plan, I will do the following:
   • a) Do not put on any new trades.
   • b) Close trades that should be closed.
   • c) Manage open trades until the exit.
2. Record details of the violation, for consideration during the post-session review.
3. Consider the need for a break, or a relaxation or recovery session.