1. 
Purpose & Scope
The purpose of this policy is to establish clear and enforceable rules for managing risk, ensuring compliance, and maintaining trading discipline across all desks and asset classes.
This applies to all trading activity carried out under the company’s accounts, including algorithmic and discretionary trades.
2. 
Authorized Instruments
Traders may only trade the following instruments with prior approval:
| Asset Class | Instruments Allowed |
|---|---|
| Equities | Listed stocks (NYSE, NASDAQ, LSE) |
| Derivatives | Index futures, options, volatility ETFs |
| Crypto | BTC, ETH, USDT, SOL, AVAX, etc. |
| Forex | Major currency pairs (EUR/USD, USD/JPY) |
| Fixed Income | U.S. Treasury futures, ETFs |
Note: All OTC, illiquid, or leveraged tokens require prior compliance approval.
3. 
Roles & Responsibilities
| Role | Responsibility |
|---|---|
| Traders | Execute trades in line with policy and strategy |
| Risk Manager | Monitor exposures, enforce stop-loss rules |
| Compliance Officer | Ensure adherence to regulatory requirements |
| CTO/DevOps | Maintain automated trading systems and data feeds |
4. 
Trading Strategies Allowed
| Strategy Type | Description |
|---|---|
| Momentum Trading | High-volume breakout or trend-following trades |
| Market Making | Bid/ask spread capture with inventory limits |
| Mean Reversion | Statistical arbitrage and pair trading |
| Event-Driven | Earnings, economic releases, or geopolitical |
| Algorithmic Trading | Systematic strategies (tested and reviewed) |
Note: Unapproved strategies must not be used in live accounts.
5. 
Capital Allocation Rules
| Rule | Limit |
|---|---|
| Max Position Size per Asset | 10% of total portfolio |
| Daily Trading Capital Use | Max 70% of total capital |
| Overnight Exposure Limit | 30% of portfolio (equities/crypto only) |
6. 
Risk Management Policy
| Risk Metric | Rule |
|---|---|
| Max Daily Drawdown | 5% of account equity (automated lockout) |
| Max Weekly Drawdown | 6% (requires review by risk manager) |
| Per Trade Risk | 1% of capital (R = Risk unit) |
| Stop-Loss Requirement | Mandatory for every position |
Live trading accounts must be connected to the firm’s centralized risk monitoring system.
7. 
Compliance Rules
- All traders must complete AML/KYC onboarding
- No trading on insider information
- Personal trading accounts must be disclosed and monitored
- Use of unauthorized third-party bots or APIs is prohibited
- All trades are logged and auditable for at least 5 years
8. 
Reporting & Journaling
Each trader must log trades daily (via internal system or journal) and include:
- Entry & exit price
- Trade rationale
- Screenshot/chart
- Result (P/L)
9. 
Strategy Testing & Deployment
| Requirement | Standard |
|---|---|
| Backtesting Period | Minimum 1 year of data |
| Win Rate | Minimum 55% or risk/reward > 2:1 |
| Max Drawdown in Sim | ≤ 10% |
| Approval | CTO + Risk Manager |
No new algorithm or trading strategy may be deployed live without documented testing results and written approval.
10. 
Review & Enforcement
This policy is reviewed quarterly.