POLARIS Research

Portfolio & Risk

Portfolio construction, diversification, drawdown, correlation, risk budgeting and practical evaluation of multi-system trading.

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Portfolio evaluation framework

How POLARIS evaluates a multi-system portfolio

A portfolio is not diversified merely because it contains several Expert Advisors. Systems can share the same market, timing window, directional bias or underlying signal family, causing apparently separate trades to fail together. Evaluation therefore starts with normalized account contributions and strategy-family relationships—not a list of magic numbers.

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How POLARIS evaluates a multi-system portfolio
Educational design example — values and states are not live performance.Open full diagram ↗

Normalize before comparing

Returns, drawdowns and weekly changes are converted to a common reference balance. This prevents a large source account from appearing more important solely because its cash P/L is larger.

Group shared risk families

Direct instances, copied trades and renamed continuations of the same VWAP, range-breakout or SMC logic are treated as related exposure. Correlation is interpreted alongside this operational lineage.

Separate signal from supervision

A supervisor can reject or close a trade, but filtering is evaluated as its own decision layer. We compare the unrestricted source with the supervised copy to see whether vetoes reduce loss or merely remove recovery trades.

Read drawdown as a path

Maximum drawdown is paired with recovery time, concentration and recent behaviour. A strong total return does not excuse one family dominating the loss budget or repeatedly delaying recovery.

Portfolio • Drawdown • Diversification

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