Hite's strategy is built on one central principle: survival first, profits second. His entire system is designed to ensure the fund can never suffer a catastrophic loss, no matter what the market does. 1. The 1% Rule — Absolute Risk Limit: Hite never risks more than 1% of total fund equity on any single trade. This is non-negotiable and applies to every trade, every market, every time. If a trade's stop-loss distance requires risking more than 1%, he reduces position size or skips the trade entirely. 2. Systematic Trend Following — No Predictions: Hite uses mechanical trend-following signals across a diversified portfolio of 50+ markets. He doesn't try to predict which markets will trend — he simply applies the same system to all markets and lets the trends emerge. His system uses moving average crossovers and breakouts to generate signals. 3. Extreme Diversification: Hite trades as many markets as possible — grains, metals, currencies, bonds, energies, indices, softs — because he knows he can't predict which markets will produce the next big trend. By spreading risk across 50+ uncorrelated markets, he ensures that losses in non-trending markets are offset by gains in trending ones. 4. Layered Position Building Within Risk Limits: Within his strict 1% risk rule, Hite builds positions in layers as trends develop. He might start with half the intended position and add the rest when the trend is confirmed. But the total risk across all layers in a single market never exceeds 1% of equity. 5. The "Equal Disrespect" Principle: Hite treats all markets with "equal disrespect" — meaning he applies the same risk rules and system to every market. He doesn't favor markets he understands better or has a "gut feeling" about. The system is the system.