## Why Stop-Losses Are Essential
A stop-loss is a pre-defined rule that limits how much you can lose in a given period before you pause betting and review. Without one, a losing run can become catastrophic — not because variance is unusually bad, but because emotional responses to losses cause bettors to deviate from their strategy.
## Types of Stop-Loss Rules
**1. Session Stop-Loss**
Maximum loss in a single betting session. Common setting: 5–10 units.
"If I lose 5 units today, I stop until tomorrow."
**2. Weekly Stop-Loss**
Maximum loss in one week. Common setting: 15–20 units.
"If I lose 20 units this week, I stop and review before betting again."
**3. Drawdown Stop-Loss**
Maximum acceptable peak-to-trough loss at any point. Common setting: 25–30 units.
"If my bankroll drops 25 units below its highest point, I pause all betting and conduct a full strategy review."
## What "Stop and Review" Actually Means
A stop-loss triggers a mandatory review — not permanent cessation. The review asks:
- Is the current losing run within my simulated variance range? (If yes: continue)
- Have I been deviating from my strategy? (Betting markets outside my validated universe, changing stake sizes emotionally)
- Is there new information that suggests my edge has eroded? (Negative CLV trend)
If the review finds variance is the likely cause and the strategy is intact, resume with no changes. If the review finds systematic problems, address them before resuming.
## The Commitment Mechanism
Write your stop-loss rules down. Put them somewhere visible (printed next to your computer, phone wallpaper). The purpose of written rules is that violating them requires explicit, conscious override — not simply forgetting them under emotional pressure.
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