Trading Rules Examples: Starter Rules, Allocation Policy, and Institutional Playbooks
Use these templates in order:
- start with a short profile template,
- add a portfolio allocation policy,
- move to a full institutional-style rulebook when you need tighter governance.
Tier 1: Quick Starter Rules
Use these when you are new to agent workflows and want a clean baseline in under 5 minutes.
Swing Trader (US large caps)
# Trading Rules- Style: swing trading, 2-10 day holds.- Universe: S&P 500 only, avg volume > 2M.- Risk per trade: max 1.0% account.- Position size: max 10% per position.- Portfolio heat: max 6% open risk.- Avoid: earnings in next 7 days.- Exits: hard stop required at entry.Position / Trend Follower
# Trading Rules- Style: position trading, multi-week to multi-month.- Universe: US liquid equities and sector ETFs.- Risk per trade: max 0.5% account.- Position size: start 5%, scale to max 12%.- Concentration: top 5 positions <= 45%.- Only add when trend and breadth confirm.- Avoid counter-trend entries in high-vol regimes.Dividend / Income Investor
# Trading Rules- Style: long-term income and capital preservation.- Universe: dividend aristocrats, quality REITs, investment-grade ETFs.- Position size: max 8% per position.- Max sector weight: 25%.- Target yield: 3%+ with sustainable payout.- Avoid: payout ratio > 80% unless special case.- No speculative small caps.Growth Investor
# Trading Rules- Style: growth, medium-term holds.- Universe: large/mid-cap growth stocks, liquid only.- Risk per trade: max 1.25% account.- Position size: max 9%.- Require: revenue growth trend and relative strength vs SPY.- Reduce size before major events if volatility spikes.- Avoid averaging down on broken trend structure.Options-Enhanced Equity Trader
# Trading Rules- Style: equity core with options overlays.- Universe: optionable names with tight spreads.- Risk per idea: max 0.75% account.- Prefer defined-risk structures (debit spreads, put spreads).- Max options premium at risk: 4% portfolio total.- No naked short options.- Always define invalidation before entry.Tier 2: Portfolio Allocation Policy (Tree Examples)
Use this layer when you want the agent to enforce portfolio distribution, concentration caps, and rebalance discipline.
Allocation Tree (Simple)
# Portfolio Allocation Rules- Stocks: target 50% (range 45-55%) - US large-cap growth: target 30% - Dividend / quality: target 20%- Bonds / income ETFs: target 25% (range 20-30%)- Broad ETFs / global beta: target 15% (range 10-20%)- Options overlay: max 10% premium-at-risk- Cash: minimum 15%
# Concentration Rules- Single stock max: 8%- Sector max: 25%- Top 5 positions: max 45%
# Rebalance Rules- Rebalance when any major bucket drifts by >5% from target.- In risk-off regime: raise cash target by +5-10%.Allocation Tree (Sleeve Model)
# Portfolio Sleeve Policy- Core + cash management: 40-50% - SGOV/BIL/SHY basket - Optional broad beta ETF sleeve (small)- Trend sleeve: 20-25% - SPY / QQQ / IWM and optional micro index futures- Mean reversion sleeve: 15-20% - liquid ETFs + selected large-cap stocks- Options overlay: 10-15% - defined-risk spreads only- Free cash floor: 15-25%
# Symbol and Sector Caps- MSFT: max 8%- NVDA: max 6%- Any single semiconductor name: max 6%- Total tech sector: max 35%
# Regime Overrides- Risk-On: baseline weights allowed.- Neutral: cut trend sleeve by 20%.- Risk-Off: reduce trend sleeve, increase core/cash sleeves.Tier 3: Advanced Institutional-Style Rulebook
Use this when you want strict operating discipline across sleeves, cadence, and drawdown controls.
# Personal Portfolio Playbook (Institutional-Style)
## PurposeOperate a personal portfolio with institutional discipline:- multiple strategy sleeves,- explicit risk budgets,- regime-based execution,- strict loss controls,- repeatable daily/weekly process.
## Portfolio Mandate- Primary objective: compound capital with controlled risk across market regimes.- Secondary objective: avoid large drawdowns and off-plan behavior.- Allowed instruments: liquid ETFs, high-liquidity large-cap stocks, micro index futures, defined-risk options structures.- Not allowed: naked options, oversized concentrated bets, martingale averaging down.
## Portfolio Structure (Risk Sleeves)1) Core + Cash Management (40-50%)2) Trend Sleeve (20-25%)3) Mean Reversion Sleeve (15-20%)4) Options Overlay (10-15%)5) Cash Buffer (minimum 15-25%)
## Hard Risk Rules (Non-Negotiable)- Risk per trade: 0.35-0.60% of equity.- Daily stop: 1.5% portfolio loss -> stop opening new risk.- Weekly stop: 3-4% loss -> reduce sizing by 50% next week.- Drawdown circuit breaker: 10-12% from equity high -> de-risk to mostly Core/Cash.- Leverage cap (gross): <= 1.3x.- Single-position concentration: no single idea dominates total portfolio risk.
## Regime Engine- Risk-On: trend longs allowed; baseline sizing.- Neutral/Choppy: favor mean reversion; reduced sizing (60-80%).- Risk-Off: defensive posture; selective hedges/shorts; reduced sizing (40-60%).
## Operating Rhythm- Daily (required): EOD review, assign regime, run sleeve scans, validate risk limits.- Weekly (required): sleeve-level performance and rebalance to target ranges.- Monthly (required): full risk review (correlation, concentration, leverage, liquidity).- Quarterly (required): keep/reduce/retire sleeves and governance review.
## Entry/Exit Quality Rules- Enter only when setup matches sleeve logic and active regime.- Stop and size must be predefined before entry.- Exit logic required: stop-loss, target/trail, and time-stop where applicable.
## Strategy Journal (Required)Track sleeve, regime, rationale, planned vs actual risk, and rule-followed vs rule-broken.Review weekly expectancy per sleeve and top rule violations.
## Anti-Gambling ProtocolTriggers:- revenge trading after losses,- increasing size without signal quality improvement,- repeated off-plan trades.
Response:- move to half-size for 5 sessions,- trade only highest-quality setups,- pause options/futures if rule adherence drops.Start with Tier 1, add Tier 2 once your process is stable, then adopt Tier 3 selectively.