Disliked{quote} The indexes are just one factor. If the whole index is outside 2 standard deviations - take actions to reduce risk (close positions if you have to). But there are many other factors that you have to track if you want to detect the danger early! News. Obviously. Turn off the system before major news. This way you avoid almost half of the fat tails. Sometimes manual intervention is necessary. Pay attention to the spreads! Track the averages! Sudden spread spikes across the board for no reason = danger signal! Watch out for smooth trends. If...Ignored
Persistence will get it. Consistency will keep it.