Risk management

Risk management is central to the design of the Loblolly Trading program. The strategy operates within a multi-layer framework that governs exposure, position sizing, volatility, and portfolio limits. Each potential trade must meet strict predefined risk thresholds before capital is deployed.

Position sizing is determined by a proprietary risk model that incorporates market volatility, conviction, and exposure constraints. Risk is defined at entry, and maximum loss per position is enforced systematically rather than adjusted subjectively.

Exposure is monitored continuously at both the position and portfolio level. The program incorporates volatility regime filters, exposure limits, and scaling mechanisms to reduce risk during periods of elevated uncertainty. Trades are skipped entirely when volatility or market structure conditions are unfavorable.

There are no discretionary overrides of model-driven risk signals. Periods of reduced activity are an expected and intentional outcome of this approach.