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The Number That Said It Was Safe: Institutional Lessons in Algorithmic Trading Risk Management

The Number That Said It Was Safe: Institutional Lessons in Algorithmic Trading Risk Management

October 20, 2026 Category: Blog

In early 2012, a portfolio inside JPMorgan Chase’s Chief Investment Office was breaching its risk limits. Then a new value-at-risk model arrived, and the problem seemed to vanish. Under the new model, the portfolio’s reported risk fell by roughly half.Within months, the trades later known as the “Lo

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