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I was just curious how it would work if I'm monitoring positions with data that has a daily resolution. If you're not setting a physical stop order, do I understand it correctly that if you set a Max Drawdown risk management model (for example) it would only check if your positions have moved against you once a day? So they could potentially move past your risk parameters before the next check?
I guess the simple solution would be to use an actual stop and just update its position once a day, I'm just usually more inclined to not have stops sitting in the market, so I was just curious if my interpretation is correct.
Fred Painchaud
Hi Sean,
Yes, risk models are tied to PCMs and look at targets before hitting the execution model. So when PCM is done once a day, risk management is also done once a day.
Fred
Sean Tiffen
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