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Loss-Streak Risk Reduction ​

Loss-Streak Risk Reduction is an experimental control that shrinks your position size automatically when a channel is on a losing run, then restores it once the channel wins again. The idea is simple: a bad streak should cost you less than a good one earns, without you having to babysit the sizing by hand. It works per channel and per account, so a cold streak on one channel never touches your sizing anywhere else.

Experimental

This is an experimental control, off by default. Test it on a demo account before using it on live capital — behavior and defaults may change.

What it does ​

Every time a trade on a channel closes at a loss, TTMT applies a risk multiplier — a fraction of your normal size — to the next trade on that same channel and account. Stay in the red and the multiplier keeps shrinking; win, and it snaps back to full size. The multiplier only ever scales the size down from your normal risk; it never sizes you up.

Because the scope is per channel × account, each channel carries its own streak on each account:

  • A losing run on your gold channel sizes down only that channel's gold trades, on that account.
  • The same channel on a different account tracks its own separate streak.
  • Every other channel keeps trading at full size.

How the multiplier moves ​

There are two modes for how the multiplier shrinks after a loss:

ModeAfter each closed loss
CompoundThe multiplier halves — 100% → 50% → 25% → 12.5% …
FixedThe multiplier drops to a flat 50% and stays there while the streak continues

A closed profit restores the multiplier back to full size — one winning trade ends the reduction, whichever mode you use.

The floor ​

The multiplier never falls below a floor you choose. Three presets are offered — 50%, 25%, and 12.5% — and if a floor can't be resolved for any reason the system uses 12.5% as the fallback. The floor stops Compound mode from shrinking your trades into nothing on a long streak: once it reaches the floor, it stays there until a win resets it.

Example — a compound streak

You run Compound mode with a 25% floor on a channel. Three losses in a row take the multiplier 100% → 50% → 25%, where the floor holds it. The next trade is sized at a quarter of normal. Then a winner closes — the multiplier snaps back to 100% and the channel trades full-size again.

When the streak resets ​

Two reset styles decide when the multiplier returns to full size:

ResetThe multiplier resets on
SessionA win or the daily 5 PM ET session boundary
ContinuousA win only

Session is the more forgiving of the two: even without a win, the streak clears at the daily 5 PM ET rollover, so yesterday's cold run doesn't follow you into a new session. Continuous carries the streak indefinitely until the channel actually wins — stricter, and better suited to a channel you want held on a tight leash until it proves itself again.

Where it sits in your sizing ​

Loss-Streak Risk Reduction is the last sizing step, applied on top of everything else:

  1. Your normal sizing runs first — fixed lots or % of balance, then your risk level adjustment.
  2. The loss-streak multiplier scales that result down.
  3. Finally, the broker's minimum-lot rules clamp the outcome, so a heavily reduced trade never drops below a size your broker can actually place.

Because the broker minimum-lot clamp comes last, on very small accounts or very small lot sizes a reduced trade may land at your broker's minimum rather than the exact multiplied figure. That is expected — the clamp keeps the order fillable.

What counts toward the streak

The streak is built from closed trades on the channel and account. A losing trade that you later soft-delete still counts toward the streak history — removing it from your logs does not erase it from the streak. If the multiplier can't be resolved for any reason, TTMT falls back to a neutral multiplier of 1 (full size), so a lookup failure never silently changes your risk.

Backtesting it before you turn it on ​

Because this control is experimental, TTMT lets you backtest it against a channel's past trades before you commit. The backtest replays the channel's closed history through your chosen mode, floor, and reset style and shows what your sizing would have been.

  • The backtest needs at least 10 trades of history to run — a channel with fewer closed trades can't be evaluated.
  • The result is a historical illustration, not a projection. It shows how the rule would have behaved on trades that already happened; it does not predict future performance.

Reading it in the Signal Tester ​

When you run a signal through the Signal Tester, the sizing it reports is the unscaled baseline — your normal size before any loss-streak multiplier. The tester deliberately shows the baseline so you can see your configured sizing clearly; the live multiplier only ever applies to real, sequential trades on the channel.

When to use it ​

Loss-Streak Risk Reduction suits channels that go through defined hot and cold spells — where a losing run tends to cluster and a win genuinely marks a turn. It contains the damage of a cold streak automatically, then gets out of the way once the channel recovers.

It is less useful on a channel whose results are effectively random trade to trade, where a past loss says nothing about the next trade. And because it is experimental, treat it as something to trial on a demo account first — watch a few streaks play out in the logs, confirm the sizing moves the way you expect, and only then consider it on live capital.