Market Risk
Model Risk
Liquidity Risk
Execution Risk
Technology Risk
Behavioral Risk
Regulatory Risk
0xNG RISK
Risk Before Return.
Risk research asks what happens when assumptions fail, liquidity disappears or models stop behaving as expected.
THE CORE QUESTION
What Happens IfWe Are Wrong?
HOW WE EVALUATE
Win Rate Is Not the Answer.
Win Rate
Risk / Reward
Maximum Drawdown
Volatility
Profit Factor
Sharpe / Sortino
Out-of-Sample
Parameter Sensitivity
Tail Risk
Stability
RETURN × RISK × STABILITY × REPEATABILITY
RISK FAQ
Questions Before the Return.
What is model risk?
Model risk is the possibility that assumptions, parameters, data relationships or implementation no longer represent the market environment in which the model is being used.
Why separate liquidity risk from market risk?
A market view may be directionally reasonable while execution becomes difficult because available depth, spreads or market impact deteriorate. Liquidity is therefore evaluated separately.
Why is execution risk part of research?
Observed prices and theoretical model outputs are not the same as executable results. Slippage, latency, fees and venue conditions can materially change realized outcomes.
Why include behavioral risk?
Human decisions can override a research process through overconfidence, loss aversion, excessive leverage or failure to follow invalidation rules.
Does risk management remove the possibility of loss?
No. Risk management is intended to identify, structure and limit uncertainty. It cannot eliminate market risk or guarantee a result.