risk-governor

Volatility-aware position sizing uses GARCH-derived annual volatility and regime signals to compute a target weight via the formula w(t) = min(1.0, vol_target/σ_t) × regime_mult × trend_mult. This removes guesswork by mathematically adjusting exposure during volatility spikes or bear markets.

GARCH-based position sizing translates forecasted volatility into actionable portfolio weights. It caps exposure by calculating w(t) = min(1.0, vol_target/σ_t), ensuring your asset allocation automatically scales down when estimated volatility exceeds your predefined target percentage.

Adjust position sizes for market regimes by applying regime multipliers to the base volatility-targeted weight. The system modulates exposure by multiplying the initial sizing calculation by regime-specific and trend-specific factors to normalize risk across varying market conditions.

Yes, quantitative signals can override volatility-targeted portfolio weights. The sizing formula applies trend multipliers alongside regime multipliers, allowing quantitative score inputs to modify the final position size and enforce risk-controlled exposure constraints.

Computing a volatility-targeted position weight requires GARCH annual volatility percentage, current market regime, volatility target percentage, and price context. These inputs feed directly into the sizing formula to generate an actionable asset weight.

Integrate GARCH volatility forecasting into automated risk workflows by querying the system on demand with current price context and regime signals. The integration-ready design outputs computed position weights directly for automated portfolio sizing decisions.