The Fund monitors trading activiety in order to minimize overall cost. The average equity per trade is...
To mitigate potential losses, the Fund sets a predetermined point of exiting a trade. Exit points may be based on volatility stops, percentage stops, chart stops, or time stops.
The Fund's tolerance for price volatility during a 24-hour period, as measured by standard deviation, is typically limited to 1.00% to 2.00% during a daily open to close session.
The Fund's primary objective in risk management is to cut losses early, and let profits run. Our philosophy: it's better to take a small loss early than a big loss later. Conversely, when a trade is going well, the Fund is not afraid to let it continue working. The Fund monitors trading activity on a daily and monthly basis; below are target metrics we look at.
Average Margin to Equity
Average Monthly Volatility
Click here for the Polaris Capital Fund Fact Sheet.