244 CHAPTER ◆ 2 6 Plan Performance and Risk Processes
26.4.1. Best Practices
● Plan to integrate evaluation of performance relative to the backtest and to a bench-
mark and Value at Risk.
● Use an index benchmark, peer group benchmark, or Monte Carlo benchmark for
every trading/investment system.
● Automate the process of retaining all data and calculating all metrics. These should
have been prototyped in Stage 1.
● Plan and document risk management processes up front, not after the fact.
● Plan for out-of-control systems during extreme market movements, assigning
responsibilities to human traders to “ safely land the plane. ”