Risk Management
Our risk management is the key to long run success:
- VaR (Value at Risk) analysis.
- 24-hour sensitivity and scenario analysis of existing positions and trade ideas under consideration
- Risk reward symmetry of individual trades and portfolios
- Analysis of leverage multiples
- Analysis of volatility and correlation changes
- Limited exposure to event risk
- All positions are closed intraday
- Stress tests
- 24-hour monitoring of drawdown levels
- If pre-established portfolio drawdown limits are approached, positions are liquidated
- All positions may be liquidated if trading environment is not as anticipated
- Monitoring of trade diversification within portfolios
- Rebalancing of trades due to actual changes in volatilities, prices or correlations
- Analysis of portfolios for expected and unexpected market changes
HMNH Capital, LLC continuously reevaluates and refines its trading methods and strategies. It is this ability of HMNH to adapt its trading approach to varying market conditions which allows the firm the potential for profitable trading in virtually any market environment.
