Rewrite the current thesis
This is a hypothetical position review. Restate the case using current information instead of copying the entry memo. If the review can only repeat the original wording, it has not begun.
Separate thesis change from position change
The directional view can remain intact while basis, funding, volatility, collateral, or counterparty limits change the risk. The record should identify which layer moved.
Make invalidation observable
“The environment worsens” cannot trigger an action. Invalidation should point to structure: disappearing liquidity, a broken hedge, unavailable financing, or on-chain and derivatives evidence that conflicts with the thesis.
- Current thesis and evidence.
- Position structure and leverage.
- Liquidity and execution path.
- Invalidation conditions and review frequency.
Finish with the exit path
Exit order affects basis, collateral, and counterparty exposure. The plan should state which leg moves first, where it can trade, and which steps may fail under stress. “Close if necessary” is not an execution plan.