Position sizing and stop-loss rules
Each trade is subject to sizing parameters and immediate stop-loss placement at trade initiation.
Risk management
Risk controls embedded in the trading process.
Photon Capital Fund LP’s strategy incorporates risk controls at the model, trade, portfolio, and operational levels. These controls are designed to manage risk, not eliminate it.
Drawdown and exposure controls
The strategy uses daily drawdown limits and model-based exposure constraints to govern aggregate risk.
Automation monitoring
Automated systems require monitoring for data integrity, connectivity, order routing, software, and execution issues.
Risk framework
Controls are part of the system, not an afterthought.
The fund’s approach emphasizes large-capitalization U.S. equities, automated execution rules, model-based exposure constraints, intraday position management, and ongoing review of trading behavior.
The fund may use leverage as described in its offering documents. Leverage can magnify both gains and losses and can increase volatility.
Material risks include, without limitation:
- Market volatility and rapid price movements
- Model risk and parameter failure
- Execution, liquidity, and short-selling risk
- Technology, connectivity, software, and data integrity risk
- Leverage risk and forced liquidation risk
- Operational, counterparty, and service-provider risk
Important
Risk management does not assure profitability.
There can be no assurance that the fund will achieve its investment objective or avoid substantial losses. Investors should review the full Private Placement Memorandum and consult their own advisers before investing.