The Trading Manager has developed a framework to assess risk in totality by bringing together the assessment of all different types of risk such as, amongst others, market, operational, legal, technical, liquidity, exchange rate and regulatory.
Risk management is an extremely important component of the Fund’s trading program as the Trading Manager’s philosophy is that risk management is arguably more important than trading strategy. Furthermore, in the trading program risk can be defined and managed, whereas the potential profit of the trading strategy is totally non-deterministic.
Risk controls applied by the Trading Manager do not cover risks such as technical failure of computer systems, trading systems, network connections and Broker network connections to liquidity partners for trading. Broker insolvency and Broker activity outside the regulated authority’s regulations are also risks not applicable to risk controls. The Trading Manager or the Fund cannot be held liable for such failures, Broker insolvency or Broker activity outside the regulated authority’s regulations.