Phase 6 introduction
Professional trading. Turn individual trades into a durable trading system with risk controls, portfolios, execution, attribution, and review.
What this phase establishes
The first five phases concerned a trade or a strategy. Professionals manage a system: multiple positions, multiple strategies, risk rules, an execution process, and a continuously updated journal.
You should be able to explain where today's risk sits, whether a portfolio is genuinely diversified, why you made money this month, and whether profitable trades were good decisions.
Six chapters
Why do professionals inspect risk before opportunities each morning?
Does holding BTC, ETH, and SOL diversify risk?
Why do two traders earn different returns from the same signal?
If you profited this month, do you know why?
Is a profitable trade necessarily a good decision?
What is still missing between an idea and a durable trading system?
Foundation capstone
Manage a $100,000 virtual portfolio end to end, with at least one full review cycle (daily, weekly, monthly), and submit:
- Positions, risk budgets, and risk-control rules
- Trade Cards and journals for every trade
- Monthly attribution: contributions from direction, signal, Carry, execution, and fees
- A review distinguishing sound decisions from good luck
Assessment emphasizes decision quality, risk control, and process discipline rather than profit. See the Foundation capstone handbook.
Knowledge nodes
| concept_id | Nodes | Foundation | Advanced | 3D |
|---|---|---|---|---|
| TRD-PRO-001 | Risk management Risk Management | Chapter 31 | D | Market crisis |
| TRD-PRO-002 | Portfolio Portfolio | Chapter 32 | D | Portfolio |
| TRD-PRO-003 | Execution Execution | Chapter 33 | E | — |
| TRD-PRO-004 | PnL attribution PnL Attribution | Chapter 34 | F | — |
| TRD-PRO-005 | Trading journal Trading Journal | Chapter 35 | F | — |
| TRD-PRO-006 | Trading system Trading System | Chapter 36 | F | Institutional trading desk |
Self-test before skipping
A trigger price is not a fill guarantee. Reconcile losses using available execution prices; stop adding risk after reaching the daily limit.
No. Volatility and co-movement determine risk contributions; venue concentration must be examined separately.
No. The same resting orders are consumed in the same order. Compare using a common benchmark and completion fraction.
No. Retain Residual and inspect data, valuation, and cash flows. Do not manufacture skill from an unexplained difference.
Profit does not erase process failures. Keep the advance plan and evaluate decisions separately from outcomes.
No. Reconcile orders, fills, and positions first to avoid creating duplicate risk.