SPEC-EAV-001 v0.2 · Layer L2 Risk management
K-02 Per-trade risk consistency
K-02 tests whether the amount risked per trade follows a rule. It is judged from the distribution of (entry price minus stop price) times volume divided by prior balance; where no stop price is recorded, realised loss divided by prior balance is used instead.
What it examines
The distribution of risk as a fraction of equity, trade by trade.
How it is computed
(entry − stop) × volume ÷ prior balance, across all trades. Where stop prices are absent, substitute realised loss ÷ prior balance and mark the substitution in the output.
What a defect means
High dispersion means risk is being decided by chance rather than by rule. In that state a single outlier can eliminate the account.
Judgment states
| Pass | The structure is observed and meets the threshold. |
|---|---|
| Caution | The structure is observed but sits at the boundary of the threshold. Evidence figures are presented alongside. |
| Defect | The structure is not observed, or clearly falls outside the threshold. |
| Not judgeable | The required input data is absent. Marked distinctly from a pass. |
Threshold
Not fixed. Determined from calibration data. See SPEC-EAV-001 §11.
Basis
Jung Chunghwa, FX Market Structure and Systematic Trading (2026), ISBN 979-11-220192-1-6. Research note R-001, Structural problems of EA-based systematic trading (2026-08-20).
Questions this item answers
- How much should risk per trade vary in a sound system?
- Can I measure per-trade risk without the stop loss values?
Related items
Related terminology
Revision · SPEC-EAV-001 v0.2 · 2026-08-21