Building a Trading System That Keeps You Alive

2026-02-01 · Jazz Lien

After a painful experience with IREN — a position that taught me the importance of systematic risk management — I built Anchor & Flow, my personal framework for navigating markets.

The Problem

Like many retail investors, I started by making decisions based on conviction and "feeling." Sometimes it worked. Often it didn't. The issue wasn't my analysis — it was my execution and risk management.

The Solution: Anchor & Flow

The system has two components:

1. Anchor Positions

These are your core holdings. They define your portfolio's structure and shouldn't change based on market noise.

• Long-term thesis (3+ years)
• Sized for comfort during drawdowns
• Rarely traded

2. Flow Positions

These are tactical. They rotate based on market conditions and shorter-term opportunities.

• Clear entry and exit criteria
• Strict position sizing rules
• Regular review cycles

Key Principles

1. Never risk more than X% on any single position
2. Set stops before entering, not after
3. Take profits systematically
4. Document every trade

The Result

The system isn't about maximizing returns — it's about staying in the game long enough for compounding to work.

Since implementing Anchor & Flow, my drawdowns are smaller, my sleep is better, and my returns are more consistent.