Risk Beyond Headline Returns
Draft guide • 2 min read
FYFX Learn
Key Takeaways
- A return figure gives only part of the picture.
- Track whether results still match the original rationale.
Describe the Downside
A return figure gives only part of the picture. Explain drawdown depth and duration, position concentration, leverage and exposure to individual events. Describe both the losses already observed and scenarios that have not yet occurred.
Make Controls Understandable
Show how position sizing, exposure limits and decisions to reduce or pause trading work in practice. Distinguish rules built into the execution process from actions that depend on judgement. We seek an understandable process rather than a universal numerical threshold.
Review Behaviour Over Time
Track whether results still match the original rationale. Changes in costs, liquidity, correlations or trader behaviour can matter even when a strategy remains profitable. Risk limits and allocation terms are strategy-specific discussion topics, not commitments made on this website.