Desk Risk Management

Read these first

1. 01Living Inside Your Risk Limits

   A risk limit only works if you treat it as a wall you plan around, not a line you find out you've crossed after the fact.

2. 02Spotting A Crowded Trade

   A great thesis that everyone else already owns can lose money for reasons that have nothing to do with whether the thesis is right.

3. 03The Drawdown Derisking Ladder

   Cutting size automatically as losses deepen, on a pre-agreed schedule, takes the decision away from the version of you that's already down money and least trusted to make it.

4. 04When Positions You Thought Were Independent Move Together

   The riskiest moment on a book isn't a single bad trade, it's discovering that several trades you sized as unrelated were actually the same bet wearing different tickers.

Then the rest

1. 05Being Taken Down By Risk
2. 06Escalation: Who You Call And When
3. 07Explaining Your Book To Management
4. 08Finding The Exposure You Did Not Know You Had
5. 09Getting Caught In Someone Else's Deleveraging
6. 10How Long Would It Take To Get Out?
7. 11Ramping Risk On A New Strategy
8. 12Reallocating Capital Between Strategies
9. 13Soft Limits, Hard Limits And Warning Levels
10. 14Stressing Your Live Book
11. 15The Conversation With Risk Management
12. 16The Daily Loss Limit
13. 17What Happens When You Breach A Limit
14. 18What Is The Worst This Position Can Cost Me?