This risk is mainly managed by measuring value-at-risk (VaR) on the fund level, strategy level and position level. The VaR figure provides a good estimate of the expected profit and loss for a typical day. The goal is for each strategy to have a VaR of 0.1 - 0.5% meaning that during most days (95%), each strategy will have a result that is +/- 0.1 - 0.5%. This adds up to a VaR for the fund of 0.7 - 1.0% which corresponds to a yearly volatility of 7 - 10%. This is roughly half the volatility of the stock market.