Portfolio Manager
When to Use
Trigger phrases:
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"Managing capital allocation across multiple trading strategies"
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"Tracking performance metrics (IRR, MOIC, Sharpe, win rate) for a quant fund"
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"Implementing phase gates for progression from paper to live to scaled trading"
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Managing capital allocation across multiple trading strategies
-
Tracking performance metrics (IRR, MOIC, Sharpe, win rate) for a quant fund
-
Implementing phase gates for progression from paper to live to scaled trading
-
Calculating position sizes with risk-based formulas
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Generating investor reports for fund performance review
When NOT to Use
- When you cannot afford to lose the capital at risk
- For instruments you do not understand
- When emotional state impairs judgment (revenge trading, FOMO)
Overview
Portfolio Manager provides market analysis capabilities with risk management.
Workflow
# Example: Position sizing (Kelly Criterion)
def kelly_size(win_rate: float, avg_win: float, avg_loss: float) -> float:
if avg_loss == 0: return 0
b = avg_win / abs(avg_loss)
kelly = (win_rate * b - (1 - win_rate)) / b
return max(0, min(kelly * 0.5, 0.02)) # Half-Kelly, max 2%
- Research — Analyze market conditions and opportunities
- Plan — Define entry, exit, and position sizing
- Execute — Place trades with proper order types
- Monitor — Track positions and market changes
- Manage risk — Apply stop-losses and hedging
- Review — Post-trade analysis and journaling
Risk Management
- Never risk more than 1-2% of portfolio per trade
- Set stop-loss before entering any position
- Diversify across uncorrelated assets
- Size positions based on volatility (ATR)
- Have a maximum daily loss limit
Key Metrics
- Win rate and profit factor
- Sharpe ratio and max drawdown
- Average risk-reward ratio
- Expectancy per trade
- Correlation to benchmark
Discipline Rules
- Follow your trading plan — no impulsive trades
- Cut losses short, let winners run
- Review every trade in your journal
- Never revenge trade after a loss
- Take breaks after consecutive losses
Anti-Rationalization Table
| Rationalization | Reality |
|---|---|
| "I will cut losses later" | Later never comes. Set stop-losses before entering any trade. |
| "This time is different" | It never is. Follow your strategy, not your emotions. |
| "I do not need to journal" | Journaling reveals patterns in your behavior. Track every trade. |
Process
- Prepare — Gather requirements, verify prerequisites, set up environment
- Execute — Run portfolio manager workflow with configured parameters
- Verify — Validate output meets requirements, document results
Verification
- All steps executed successfully
- Results validated against acceptance criteria
- Error handling tested with edge cases
- Documentation updated with findings