Quant/Quant-Discretionary Trading Dilemma I have a fully developed and back-tested multi-market multi-strategy quantitative trading program that I have near 100% confidence in. Additionally, I have a quantitative strategy with a substantial discretionary overlay, let say 70% quantitative, 30% discretionary. This âoverlayâ strategy is more dynamic than the 100% quantitative strategy, has a smaller minimum capital requirement, and is far more nimble in containing losses due to the discretionary element. However, due to the discretionary component of this strategy, I don't have that "near 100% confidence" in it as I do in the 100% quant strategy. If capital wasnât an issue, I would trade the 100% quant program, but with such a high minimum capital requirement (high seven figures) I cannot trade it at this time unless I increase the leverage by 2-4 times and thus reduce its capital requirement. The risk of course in doing so is severe drawdowns. So my dilemma is: Do I trade a strategy (the 100% quant strategy) that I am virtually 100% sure of its potential at 2-4x higher leverage and risk severe drawdowns or do I trade the 70% quant-30% discretionary strategy; a more nimble, dynamic strategy with lower capital requirements but with lower confidence. Your thoughts and ideas, please. I think there can be many lessons here about risk management, portfolio design, quant vs. discretionary trading. Thank you.