Orchestration & Risk

1) Diversified Allocation & Limits 1.1 Per-method and portfolio-level limits for VaR, max drawdown, exposure, and correlation. 1.2 Regime detection (trend, chop, volatility expansion) adjusts risk budgets and order sizing. 1.3 Stability via diversification: if one method underperforms at a given time, others are designed to offset.

2) Execution Controls 2.1 Hedge-first sequencing for multi-leg trades to minimize directional exposure. 2.2 Latency budgets with failover routing; partial-fill logic and re-quotes as conditions change. 2.3 Price-impact modeling and slippage ceilings; position netting to reduce footprint.

3) Kill-Switches & Scale Rules 3.1 Automatic de-risk if KPIs breach thresholds (e.g., tracking error, hedge slippage, IL variance). 3.2 Scale capital only after minimum live sample, target Sharpe/Sortino, and bounded slippage variance. 3.3 Circuit breakers on oracle divergence, venue incidents, or abnormal volatility.

4) Profit Recognition Discipline 4.1 Only realized PnL counts; unrealized marks do not. 4.2 Loss carryforward/high-water mark ensures no revenue during recovery periods.