Static daily loss caps fail exactly when you need them. A short guide to volatility-aware limits.
Why static limits fail
A fixed CHF loss cap is a different bet in a 6% vol regime than in a 16% one. Limits should be expressed in volatility units.
Implementation
Our risk automation recalculates position ceilings every session close using a 20-day realised volatility estimate.
Written by the Helvetia Markets trading desk in Zurich. General information only, not investment advice.
