diff --git a/adaptive-strategy/src/risk/mod.rs b/adaptive-strategy/src/risk/mod.rs
index a8b82aa53..33e5ee736 100644
--- a/adaptive-strategy/src/risk/mod.rs
+++ b/adaptive-strategy/src/risk/mod.rs
@@ -19,7 +19,7 @@ use anyhow::Result;
 use num_traits::ToPrimitive;
 use serde::{Deserialize, Serialize};
 use std::collections::HashMap;
-use tracing::{debug, info};
+use tracing::{debug, info, warn};
 
 // Add missing core types
 use super::config::{PositionSizingMethod, RiskConfig};
@@ -382,26 +382,50 @@ impl RiskManager {
             symbol, expected_return
         );
 
-        // Use enhanced Kelly sizer if available and method is Kelly
+        // Use enhanced Kelly sizer if available and method is Kelly.
+        // Falls back to standard sizing if historical data is unavailable.
         if let PositionSizingMethod::Kelly = &self.config.position_sizing_method {
             if self.kelly_sizer.is_some() {
-                return self
+                match self
                     .calculate_kelly_position_size(
                         symbol,
                         expected_return,
                         confidence,
                         current_price,
                     )
-                    .await;
+                    .await
+                {
+                    Ok(recommendation) => return Ok(recommendation),
+                    Err(e) => {
+                        warn!(
+                            symbol = %symbol,
+                            error = %e,
+                            "Kelly sizing failed (no historical data?), falling back to fixed-fraction sizing"
+                        );
+                        // Fall through to standard sizing below
+                    }
+                }
             }
         }
 
-        // Use PPO sizer if available and method is PPO
+        // Use PPO sizer if available and method is PPO.
+        // Falls back to standard sizing if historical data is unavailable.
         if let PositionSizingMethod::PPO = &self.config.position_sizing_method {
             if self.ppo_sizer.is_some() {
-                return self
+                match self
                     .calculate_ppo_position_size(symbol, expected_return, confidence, current_price)
-                    .await;
+                    .await
+                {
+                    Ok(recommendation) => return Ok(recommendation),
+                    Err(e) => {
+                        warn!(
+                            symbol = %symbol,
+                            error = %e,
+                            "PPO sizing failed (no historical data?), falling back to fixed-fraction sizing"
+                        );
+                        // Fall through to standard sizing below
+                    }
+                }
             }
         }
 
@@ -555,15 +579,17 @@ impl RiskManager {
         })
     }
 
-    /// Get historical returns for a symbol (production implementation)
-    async fn get_historical_returns(&self, _symbol: &str) -> Result<Vec<f64>> {
-        // In production, this would fetch from market data service
-        // For now, return sample data
-        Ok(vec![
-            0.05_f64, -0.02_f64, 0.08_f64, -0.03_f64, 0.06_f64, -0.01_f64, 0.04_f64, -0.02_f64,
-            0.07_f64, -0.01_f64, 0.03_f64, -0.04_f64, 0.09_f64, -0.02_f64, 0.05_f64, -0.03_f64,
-            0.06_f64, -0.01_f64, 0.08_f64, -0.02_f64,
-        ])
+    /// Get historical returns for a symbol.
+    ///
+    /// Returns an error because no market data feed is connected yet.
+    /// Callers should fall back to fixed-fraction position sizing when this fails.
+    async fn get_historical_returns(&self, symbol: &str) -> Result<Vec<f64>> {
+        anyhow::bail!(
+            "No historical return data available for '{}'. \
+             A market data service must be integrated to provide real return history. \
+             Falling back to fixed-fraction sizing is recommended.",
+            symbol
+        )
     }
 
     /// Build market data for Kelly calculation