Bankroll and Risk Framework

Core principle

A single outcome contains noise. Your process must survive enough repetitions for skill to matter.

Rules

1. Define one unit of risk before entry.
2. Set a daily loss limit.
3. Reduce size after material drawdown.
4. Track results in R-multiples by setup.
5. Never increase risk solely to recover a loss.

Poker reinforces the same lesson: preserve the bankroll, choose favorable situations and judge decisions independently from short-term outcomes.

TradingPoker.org-authored educational material.