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Maximum executions per period

This risk measure is an interval-based risk check. An interval-based risk is a counter that resets after a fixed amount of time and the risk check is imposed within such a time slice. So, while there is no final limit, it's important that the limit isn't exceeded within the time interval that is meant to detect and avoid over-trading. The interval-based risk measure we will inspect is maximum executions per period. This measures the maximum number of trades allowed in a given timeframe. Then, at the end of the timeframe, the counter is reset and starts over. This would detect and prevent a runaway strategy that buys and sells at a very fast pace.

Let's look at the distribution of executions per period for our ...