Managing risk at an MM

i understand that most MM platforms have strict risk parameters, drawdown limits and etc since you guys have high levels of leverage, so how do guys manage your risk and leverage while avoiding getting blown up?

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3 Comments

HF

Quant in HF - Other

5y

Not sure if I understand the question, of course the easy answer is a balanced portfolio with appropriate risk model, but if you are conjecturing that it must be difficult to manage risk under strict bounds, the answer is YES

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Authored by: Certified Hedge Fund Professional - Portfolio ManagerCertified Hedge Fund Pro

junior2012

?

5y

A good risk model. And common sense (like don't do dumb stuff like trading pegged currencies etc.)

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HF

Partner in HF - EquityHedge

5y

Most Helpful

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Authored by: Certified Hedge Fund Professional - PartnerCertified Hedge Fund Pro

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Managing risk at an MM

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Managing risk at an MM

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