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Psychology

Ulysses Contract

A commitment device that binds the future self via the present self's authority. Odysseus ordered his crew to bind him to the mast and ignore his future demands — he used his rational present self to govern his irrational future self. Every pre-committed trading rule is a Ulysses contract.

See also
Psychology Implementation Intention A pre-committed if-X-then-Y plan (Gollwitzer, 1999). Delegates action control to a situational cue, removing real-time deliberation from the requirement. Meta-analysis across 94 studies found effect size d=0.65 on goal attainment. The structural mechanism behind every effective trading defense. → Psychology Max-Daily-Loss Cap A pre-committed maximum percentage of account capital that can be lost in a single trading session. When hit, the platform closes and the session ends. The cap is the Ulysses mast for tilt cascades — it removes the option of recovery trading, which is the only fuel the cascade needs. → Psychology Walk-Away Trigger A pre-defined condition that forces physical removal from the trading environment. Examples: hitting the max-daily-loss cap, three losing trades in a row, tilt symptoms (rushed clicking, 'just one more'), trading at 3am, or trading in an emotionally dysregulated state. Must be pre-committed and non-negotiable. →
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