The Solution cannot come from a better alpha or risk model, but from an revolutionary Investment Process concept.

Problem 1: drawdown protection has been promised to Clients but is not delivered because Risk Limits arrive too late in the worst moment: i.e. when the alpha model is recovering! As a consequence, the recover takes much longer then expected.

a person holding a cell phone with an amg entertainment app on the screen
a person holding a cell phone with an amg entertainment app on the screen
stainless steel engine bay
stainless steel engine bay

Major Problems when the Risk Management is not integrated with the Alpha process:

Problem 2: Risk Limits are too tight, Risk Management is eating the Alpha, as a result performance is mediocre.