Stay liquid to avoid unforeseen regulatory risks

Diversification of strategies / positions is the key

Risk is managed ex-ante, in real-time, and with human oversight

A pursuit of low correlation between new and existing strategies

Emphasize the development of low volatility and high Sharpe ratio strategy

Adopt Barra-style Risk Factor Analysis to predict and control style risks

Mandatory risk control on single name, industry, and style factor exposure

Maintain a blacklist of Chinese stocks to filter out fraudulent or risky companies

Weekly meeting to review performance attribution and monthly dynamic risk budgeting

Monitor competitors with similar strategy to verify idiosyncratic risk versus systematic risk

Real-time trade monitoring system to keep track of the execution progress, cash & margin level,
and specific trading restrictions