@trumpfather
goodalexander: How to Manage Risk
> Understand your total portfolio max drawdown
> Understand your key market beta exposures
> Understand your key factor exposures.
> Using Implied rather than realized volatility based sizing AND/or have explicit sizing parameters
> Assume progressively higher cost impact in illiquid conditions (illiquidity risk)
> “What is the one thing that could blow me up” / qualitative risk mgmt
> Clear apriori identification of risk limits in the above framework for deliberate exposures
> Have meta cognition on when you are doing this well or not
Source: https://x.com/goodalexander/status/1895210443171373177
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