The strategy uses risk management rules to reduce risk exposure if the market conditions are unfavorable. The strategy does not guarantee that losses will be cut and it is not able to react quickly to extreme news because of its rebalancing frequency. The risk management rules are designed to offer attractive risk-return characteristics and not necessarily to allow market exit when negative news emerges. The strategy is long only, which means that it will gain value only when asset prices go up. In short, the strategy has to take risk to make profit but it aims to keep profits larger than losses by applying risk management rules. The strategy will always hold at least a small proportion of risky assets and will depreciate in value when asset prices go down.