SAMM slices: what do separate volume and loss caps mean?

SAMM’s central idea is isolation: each slice works like a separate compartment with its own walls.

The volume cap

It sets the maximum position size a manager may take. The result: even one manager’s heavy trade does not engage the whole account at once.

The loss cap

When a manager’s slice hits its own loss limit, that slice stops — not the whole account. The remaining slices keep working.

Sizing tips

• Size the slices so part of the account stays free.
• Pick slice managers whose styles complement, not copy, each other.
• Read each slice’s fee terms separately.

See the SAMM page and the SAMM guide.

Frequently asked questions

Are volume and loss caps different? Yes; the volume cap bounds each position’s size, the loss cap bounds the slice’s total loss. You need both.

Should slices be equal? Not necessarily; weight slices by the manager’s style and your confidence, keeping part of the account free.

Can I switch a slice off mid-way? The stop rules are defined in the service terms; usually yes, without affecting the other slices.

If one slice hits its loss cap, what happens to the rest? Exactly what the slice logic promises: that slice stops, without contagion. The other slices keep working under their own rules and the free part stays untouched. But do not forget style correlation: two slices with identical strategies are effectively one double-sized slice.

Summary

SAMM is manager diversification with isolation walls. To see multi-manager setups, browse the SAMM list.

Three slice-design rules

• Volume cap: the possible position size per manager
• Loss cap: the tolerable total loss per slice
• Both numbers must be written and reviewable
• One slice stopping must not stop the whole account
• Weight slices by your confidence in each manager

The full isolation logic: See it.