Hawking Alpha believes in starting at the end, by concentrating on proper exits, in pursuit of the best risk adjusted return for the instruments traded, size of the account, and most importantly, client tolerance for risk.
Hawking believes that proper trading should have no predictive aspects to it, and that trading decisions should be made in the context of open, high, low, close, and volume only. This allows Hawking to build systems that are adaptive to the instrument list and changes in volatility no matter the geographic location or asset class. These systems are built to be scalable (both up and down) with low implementation errors and costs.
Each of Hawking’s systems are designed to conservatively and equally address portfolio composition concerns with regards to directionality, complexity, liquidity, leverage, and concentration.
We at Hawking view “risk” as a “whole market” event, with each market level, sector, strategy type and individual position contributing to the total risk profile of the portfolio.
Each position is monitored in real time for specific and significant changes in fundamental and technical status. Specific risk management techniques include proprietary risk correlation metrics, proprietary position sizing methods with diversification among uncorrelated asset classes, position limits, and evaluation methods.
Our risk management techniques help to actively balance long-term performance with short-term or intermediate-term volatility, whilst achieving superior long-term performance.