• Always be at or below 50% of the available Buying Power (BP)
  • If BP is over 60%, no new trades
  • If BP hits 85%, take action to reduce BP:
    • Buy a 30 DTE Long Put
    • Close a winning trade
    • Close Short Puts of an LT112
    • Close BIL position
• Never risk more than 2% of the net liq on any single trade
  • This is our Maximum Allowable Loss (MAL)
• Never invest more than 60% of the allowed BP on any single trading strategy (i.e. LT112s, Strangles, etc.)