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Phase 10 // Course Syllabus Chapter

Geopolitical Event Risk — How to Size and Stay in the Trade.

Part of our masterclass path. We systematically cover risk, logic, and mechanics to build professional edge.

Edge Tier Access 20 min read / 12 min video
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01_Curriculum_Brief

What is covered in this chapter

Trading Through Geopolitical Chaos

Wars, elections, trade tariffs, and sudden headlines can break a technical chart in milliseconds. These are classified as geopolitical event risks. While they are impossible to predict, they are entirely manageable if you use proper risk sizing and defensive execution.

Pete's Rule: During periods of extreme geopolitical tension (such as elections or war outbreaks), we do not stop trading entirely. Instead, we cut our standard position sizes in half (e.g., from 1% risk to 0.5% risk) and widen our stop-losses to absorb the increased spread volatility.

Managing Slip and Liquidity Gaps

During major geopolitical events, bank liquidity providers temporarily withdraw their limit orders from the market to protect themselves. This causes spreads to widen dramatically, leading to severe slippage on market orders. We cover how to use limit orders instead of market orders to guarantee entry price and prevent slippage during news events.

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Phase 10 Chapters

01Central Bank Policy Cycles — How the BoE, Fed, and ECB Move Markets02Reading a Monetary Policy Statement Like a Trader03CPI, PPI & PCE — Which Inflation Data Actually Moves Price04Employment Data — Trading NFP, UK Claimant Count, and ADP05GDP, PMI & Leading Indicators — Building Your Macro Map06Interest Rate Differentials & Currency Carry Dynamics07The Dollar Cycle — Risk-On and Risk-Off Asset Rotation08Geopolitical Event Risk — How to Size and Stay in the Trade09Building a Weekly Macro Bias — Your Directional Framework10Combining Macro Bias With Technical Entries — The Unified Model
Previous Chapter07: The Dollar Cycle — Risk-On and Risk-Off Asset Rotation
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Next Chapter09: Building a Weekly Macro Bias — Your Directional Framework