Imagine you're a senior FX trader at a hedge fund. Recently, the currency of an emerging market country, let's call it 'Arcadia,' has experienced significant depreciation due to capital outflows and falling commodity prices. Arcadia's central bank has publicly committed to intervening 'at all costs' to stabilize the exchange rate and has already conducted some small-scale interventions using its foreign exchange reserves. However, the market widely debates the effectiveness and sustainability of these interventions.
Design a trading strategy for Arcadia's currency. Elaborate on your directional view, specific trade execution, risk management framework, and contingency plans for various scenarios.