Risk Management

The corner stone of risk management philosophy has always been preservation of capital. Once again it is applied with stringent discipline and focuses on:

• Pre-set maximum loss limits
• Use of technical and market analysis to minimize these loss limits
• Emphasis on high reward/risk ratios
• Effective profit maximization techniques

Mr. Greb applies a unique approach to risk whereby these rules guide the construction of each and every trade, from its idea generation to its implementation and finally to its exit. The risk allocated to each trade is kept as consistent as possible for its relevant time frame horizon (i.e. intra-day, weekly, etc).

The technical indicators behind the trade will determine the stop loss level, the projected outcome, and therefore will dictate the trade size to be applied. The management of the downside risk is put into effect prior to a trade being initiated, and is constantly monitored with time. As the trade develops and moves towards its technical objectives, the use of trailing stops or option strategies are implemented where applicable to lock-in profits and/or maintain upside potential.Monthly absolute risk limits are allocated across manager. Market conditions and liquidity are monitored closely to ensure these parameters are not vulnerable. In addition, once certain positive performance thresholds have been attained on a realized basis, further draw-down rules are imposed to ensure a minimum profit for the trade or time period is captured.These rules have been developed over years of proprietary trading and are essential in maintaining capital gains over all periods.