Risk Management



Types of risks measured:

We manage two types of risk: Market and Operational Risk.

a. Market Risk Management Model:

Our Market Risk Management Model adopts a Down-Top approach.

Risk Management components:

Downside Limit, Reward/Risk, Sensitivity Analysis, Scenario Analysis, Correlation Analysis, Monitoring Positions, Leverage Risk, Volatility Risk, Event Risk, Peak to Trough Draw Down Analysis, Stress Testing, and contingency plans.

Our Risk Management Model adopts an anti-martingale approach, in managing the pre-trade and intra-trade risk. It is scaling out in the falling markets and averaging up in the rising market.

We compound the profit by implementing a developed formula representing a combination between “Compound and Flat ratio”; serving in optimizing the profit and minimizing the risk.

b. Operational Risk Management Model:

Our Operational Risk Management Model adopts a Top-Down approach.

Risk Management components:
Data management, Execution error, employee errors, system error, process tracking, behavior monitoring,  performance monitoring, unauthorized activities, business interruption, Key man, Rogue Trader, Infrastructure risk, stress testing, contingency plans.

We believe that the operational risk can match or even exceed the market risk.


Risk Management Applications:


We have built two platforms with sophisticated tools providing real-time risk identifying, assessing, mitigating, controlling, monitoring, and reporting.

a. Market Risk Management:

ICA has developed an Automated Market Risk Management Platform, which contains sophisticated tools and calculators serve in determining the optimal risk allocation per trade, optimal leverage, optimal scale out or average up formula, serving in optimizing the Reward/Risk asymmetry.

The platform controls automatically the following:

1-     risk

2-     leverage

3-     profit

4-     scaling out losing positions

5-     averaging up profitable positions

6-     rebuilding and recovering losing positions

7-     Trailing stoploss

8-     Margin


b. Operational Risk Management:

ICA has developed an Online Trading Room, which is a functionally centralized web-based platform, helps in improving the operational efficiency.

The platform represents an application for our "two-boss" matrix management organization structure. It represents a solution for team-based discipline trading.

This centralized platform provides the team members with accesses to our sub platforms for processing and tracking matrix information and methodologies at any time, from any location.