2-loss walk-away for US equity and ETF scalps

[Fairman]

The 2-loss walk-away for US equity and ETF scalps.

Definition: two full losses at planned R in the same session → flat, hotkeys disabled, platform closed or read-only. Review tags tomorrow. No "one more" to flatten the day.

Why two, not three: on short-timeframe stocks the third attempt is disproportionately revenge dressed as process. If your daily dollar breaker is wider, the 2-loss rule still applies. It's a behavior breaker, not only a money breaker.

Pair with the post-loss checklist between loss 1 and loss 2. If loss 1 was a breach, you may already be on size-zero without waiting for loss 2.

A worked example of how the day actually goes. Planned R is 10 cents on 400 shares, about $40.

09:39 ET: long on a reclaim at $35.62, invalidation $35.52. Stopped at $35.51 including a cent of slip. Loss 1, about $44. Post-loss checklist: rule-based, setup_id "reclaim," mistake_code "none." Body check okay. Next trade allowed, A-setup only.

10:04 ET: long on an ORB15 break at $35.90, invalidation $35.80. Stopped at $35.80. Loss 2, about $40.

Now I'm down roughly $84, which is well under my dollar breaker for the day. Doesn't matter. Two full losses at planned R, so I flatten any leftover orders, turn off hotkeys, and close the platform. At 10:30 the name I stopped out of is up 50 cents. Also doesn't matter. The rule isn't a prediction that the next trade would lose. It's a limit on how many decisions I make after two in a row went against me.

What counts as a "full loss": stopped at or near planned R. A scratch for a cent or two is not a full loss. But a trade I bailed on early at half R to avoid "using up" a loss does count. I don't get to game the counter.

Failure modes:

- Switching to a different ticker or a different account after loss 2.
- Redefining R upward after loss 1 so loss 2 "doesn't count."
- Staying on the platform "just to watch" and then taking a trade.

When the rule tightens further: after a breach, after a red prior day, or on news-heavy mornings where I've already cut size. On those days one full loss can be enough.

This is stocks/ETF desk policy on my side. Same calm rule, no drama.

Diagram: loss 1 → loss 2 → stop → tomorrow.