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Risk

Portfolio heat

The total you would lose if every open stop were hit at once.


Heat aggregates risk across all open positions rather than looking at each ticket alone. Three trades each risking 1% carry 3% of heat — and if those trades are correlated, they are effectively a single 3% bet on one idea.

Setting a maximum heat alongside a per-trade risk limit is what stops a disciplined 1% rule quietly becoming a concentrated position through several simultaneous entries.

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