Strategy Orchestration

How OctiFi chooses and configures strategies per regime with risk guards

OctiFi maintains a pool of strategies and activates the most suitable one per asset, horizon, and market regime.

Strategy pool

• Momentum: Trend-following with volatility-scaled entries

• Mean Reversion: Oscillation-aware entries with adaptive bands

• Arbitrage: Cross-venue price discrepancies; execution latency aware

• Hedging: Reduce portfolio beta during risk-off regimes

Policy selection

• Contextual bandit/RL policy uses features from Layers 1–5

• Exploration rate decays as confidence builds; spikes after regime shifts

• Backpressure from execution and risk guards can veto actions

Risk and execution guards

• Per-trade max slippage; route veto if estimated slippage exceeds cap

• Daily loss caps and rolling drawdown thresholds

• Per-asset and per-sector exposure limits

• Stop-loss and take-profit enforcement with circuit breakers

See also: Models and RL and Execution Engine