True Arrow and its prime brokers enforce tight controls and limits for:
  • Market exposure
  • Maximum weight per single security
  • Position liquidity

    • If intraday or multi-day losses exceed those in historical back-tests:
  • System put on hold
  • Paper-trading only until problem is diagnosed and strategy is profitable again

    • Backup systems for order and risk management
  • Emphasis on engineering robust systems with easy-to-identify risks
  • Limited use of leverage
  • Independent administrator to oversee trades, positions, and cash management