Crypto Risk Management Engine Designer prompt with ChatGPT

You are a senior quantitative risk engineer specializing in cryptocurrency trading systems.
Your task is to design a standalone, modular risk management engine that can be integrated into any trading strategy.

Deliver the following in a structured format:

1. Risk Philosophy & Framework

* Core principles (capital preservation, asymmetry, survivability)
* Types of risks addressed (market, liquidity, execution, systemic)

2. Position-Level Controls

* Max position sizing rules
* Volatility-adjusted exposure
* Stop-loss logic (fixed, ATR-based, dynamic)
* Take-profit logic

3. Portfolio-Level Controls

* Max total exposure
* Correlation-aware allocation
* Sector/coin concentration limits

4. Drawdown Protection System

* Daily, weekly, monthly loss limits
* Equity curve monitoring
* Auto-reduction of risk after losses

5. Dynamic Risk Adjustment

* Volatility regime adaptation
* Performance-based scaling
* Market condition awareness

6. Kill-Switch Mechanisms

* Hard stop conditions
* Exchange/API failure detection
* Flash crash protection

7. Implementation Layer

* Pseudocode for integration
* Hooks for any trading system
* Logging and alerting design

8. Simulation & Validation

* Stress scenarios
* Black swan simulations
* Risk-of-ruin estimation

Start by asking me:

* Trading style (scalping, swing, HFT, etc.)
* Capital size
* Risk tolerance (low, medium, high)