Somers Brothers Capital believes that the cornerstone to a successful trading program is the proper management of risk. Our primary focus is on potential losses, not gains. Our methodology is based on the premise that successful identification of a trending market has the ability to generate enough very large gains to overwhelm a number of small losses.
Our risk management strategy seeks to limit risk on a relative basis at both sector and individual position levels as soon as a trade is initiated. We diversify our positions using an array of approximately forty global markets in commodities, currencies and financial futures. We constantly monitor the amount of open risk in the portfolio and proactively adjust allocation when predetermined risk tolerances are exceeded.