What Is the Strategy in the Worst Case Tail Cenario?

Hard protection is your bufferd for that first amount of protection. Soft protection acts like a barrier. Once you puncture it, you're fully exposed. When to use hard or soft protection all depends on what you're trying to accomplish within the portfolio. For example, when the market gets pummelled like it did in the first six months, you'll see a lot of people have soft protection. You get a lot more upside with soft protection than you do hard protection.