How much risk should an investor take? We reduced the answer to one number: target volatility.
Clients choose a level — volatility 25% or volatility 50% a year. Everything else follows from it:
▪ when markets are calm, positions grow to reach the target;
▪ when markets are stormy, positions shrink automatically;
▪ the same strategy, the same signals — only the size changes.
The investor knows in advance how much the account is expected to swing, and can change the dial at any time.
Leverage, margin and stop-losses are tools. Volatility is the language the investor actually feels.
#riskmanagement #volatility #crypto
Clients choose a level — volatility 25% or volatility 50% a year. Everything else follows from it:
▪ when markets are calm, positions grow to reach the target;
▪ when markets are stormy, positions shrink automatically;
▪ the same strategy, the same signals — only the size changes.
The investor knows in advance how much the account is expected to swing, and can change the dial at any time.
Leverage, margin and stop-losses are tools. Volatility is the language the investor actually feels.
#riskmanagement #volatility #crypto
