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Risk Management

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Our investment process is rooted in a disciplined and iterative risk management approach. A 4-level risk management process is deeply integrated with our proprietary trading system from development to execution while maximizing opportunities for capital appreciation and appropriately minimizing uncertainties.

Level 1

Model Risk Control

  • Implemented at the individual level for every position across all 100+ quantitative models

  • As models reach their target returns, profit-taking points or stop-loss limits for a given position, the composite model signal becomes weaker, leading to smaller allocation recommendation

Level 2

Sub-Strategy Risk Control

  • Implemented at the individual sub-strategy level
     

  • When each of the three sub-strategy reaches its target return or stop-loss limit for a given position, the allocation recommended by the sub-strategy is reduced

Level 3

Portfolio Risk Control

  • Implemented at the portfolio level

  • Overall portfolio risk is reduced and investment position sizes are adjusted across the board as return targets or stop-loss limits are reached 

Level 4

Execution Risk Control

  • Implemented at every trade execution

  • Ensures that specific stop-loss limits for individual positions are always enforced in real-time, regardless of model signals

  • Performed through real-time and continuous monitoring of all investment positions, margin changes, and price movements based on live data from exchanges