Facilitates accurate risk calculation
Required for managers entering
Removes psychological stress
Choose your method of protection
The full diagram of risk management
Benefits of the risk management system
- Coordination of restrictions with managers (for members of the index of managers) All mandatory restrictions are consistent with the managers so that they don't interfere with trade. In most investment systems, restrictions are set by the investor without coordination with the managers, which leads to losses.
- Setting mandatory restrictions for managers (for non-member Indices of Governors) All mandatory restrictions are set by the manager based on his risk management. In most investment systems, restrictions are set by the investor without coordination with the manager, which leads to losses.
- Removal of psychological stress from managers The manager can't change the parameters of risk management restrictions at will in the course of trading, as a result of which the probability of deviation from the trading system and an increase in risk are minimized. The manager is protected from making mistakes due to the influence of strong emotions.
For the investor
- Preset risk management settings (mandatory part of the system) The investor don't have to understand portfolio management and adjust the parameters of risk management accounts independently. The company, in consultation with the managers (for the members of the Managed Accounts Indices), or the managers themselves (for the non-members of the Managed Accounts Indices) set mandatory limits for risk management, which allow the investor to be sure that his losses won't exceed the specified value .
- Additional risk management settings Some investors have extensive experience and knowledge in portfolio management, so if desired, the investor can adjust the limits of risk management parameters at his discretion.
- Independence of risk management system from managers The manager cannot change the risk management parameters at an arbitrary point in time, which excludes the excess of the investor’s losses over those regulated at the time of the investor’s entry into the CS. Changes in the parameters are made only with the consent of the Company, and with the obligatory notification of all investors to the CSS, and ensuring that they can stop working in the CSS before the changes take effect.
- Facilitate calculations associated with portfolio management Due to limiting losses, an investor can make accurate calculations related to the distribution of the portfolio shares between the CA and the risk level of the portfolio and its components.
Gives the investor a choice
The investor can choose any degree of aggression of the manager’s trading strategy.
Reduces non-trading risks
Opportunity to invest in smaller amounts with aggressive multi-accounts with the same result.
Facilitates risk calculation
Standardizing multi-account risks simplifies risk calculation and portfolio compilation.
Make the work easier for the manager
The manager doesn't need to maintain several accounts with different levels of aggressiveness, and, at the same time, it is possible to be content with the advantages of accounts with different degrees of aggressiveness.