Risk-On and Risk-Off

The difference is the allocation profile, not the activity: both profiles are complete allocations, and the strategy runs continuously under whichever one is active. In the Allocation card the two sit side by side — Risk-On is the allocation that runs while no risk condition is firing, Risk-Off the one that runs while one is. Each has its own allocation method picker ("Method for Risk-On" / "Method for Risk-Off") and its own invested portion, so Risk-Off can use a different weighting method, put less capital to work, or both. Until you configure the defensive side, the app shows "Risk-Off allocation needs to be set".

A risk condition does, and only a risk condition. While no configured condition is triggered the strategy runs Risk-On; while one is triggered it runs Risk-Off. With two conditions configured, either one is enough — the Risk card joins them with "Or", the two-condition combination. When the condition clears, the strategy returns to Risk-On. The condition can compare a market series with thresholds or with a second series, or it can be one of three quantitative rules that decide from a model instead — Hidden regimes (Markov), Clustering and, on a Combined, Strategy's own performance; condition types lists all five. How quickly the switch reaches your holdings depends on the condition's confirmation delay and its auto-rebalance toggle.

How do you find out your strategy has gone Risk-Off?

You see the current regime by opening the strategy — the app does not notify you when a strategy flips to Risk-Off. There are no push notifications, alerts or emails on a flip today. On the Settings page, the When section of the Risk card lists each condition, with "Or" between two of them, so you can see what would trigger a switch.

The allocation summary badges the two states as "Risk-On only" or "Risk-Off set up". On the Settings page the Allocation card switches between Risk-On and Risk-Off with two keys at the top right. Under the method button, a line names the other regime's method — "In Risk-Off:" or "In Risk-On:" — with Open to switch to it.

When the Risk-Off profile matches Risk-On, the Risk-Off key carries the violet mark of an alert to review, and — with Risk-Off open — the line beside the method button reads "Same as Risk-On: the regime change does not change the allocation". The method button's lower edge and that line turn violet too.

With no Risk condition active there is nothing to switch between: the Risk-Off key is grey and cannot be pressed, and pointing at it says "Risk-Off switches on when you add a condition in the Risk card." On a plan that does not include Risk-Off, the key carries the mark of the plan that does.

A strategy holds three equity ETPs, weighted equally, with all of its capital invested — that is its Risk-On profile. You set its Risk-Off profile to the same three instruments but with a lower invested portion, leaving part of the capital in cash. A risk condition then triggers.

The strategy switches to Risk-Off at the next rebalance (or immediately, if the condition has Auto-rebalance on). It sells down each holding to the smaller target, and the freed capital sits in the cash reserve. It still holds all three ETPs, still rebalances on schedule, and still records positions and results — it is simply carrying less market exposure. When the condition clears, the strategy switches back to the Risk-On profile and the cash is put back to work. Had you instead set the Risk-Off profile identically to Risk-On, this whole sequence would have produced no change at all.