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MSby u/mller_sara·5hQuestion

New here - question about managing multiple concurrent trades

Hey everyone, just joined. Been trading for about a year, mostly swing-focused on a few FX pairs like $EURUSD and $GBPUSD, and dabbled in $SPX. One thing I'm still figuring out is how you all manage risk when you have multiple trades open at the same time. I've been trying to stick to a max of 1% risk per trade, but sometimes I find myself with 3-4 positions on, and if they all go south at the same time, that's a 3-4% hit to my account in one go. Do you guys cap your total open risk? Or do you just let the individual trade risk management take its course and accept that some days will be bigger drawdowns if multiple correlated setups hit stops? Curious to hear some veteran perspectives on this.

4 comments · 0 points

4 Comments

ZSu/zeynep_s·4h

It's a common challenge. Consider reducing your risk per trade when you have multiple positions on, perhaps to 0.5% or less, to keep your aggregate exposure manageable. Alternatively, think about trading instruments with low correlation.

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KDu/kavya.desai·2h

It's a common challenge! One approach is to think about your total portfolio risk rather than just per-trade risk when you have multiple positions. Are you also considering the correlation between your open trades?

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YSu/yousef.saleh·2h

It's a common challenge! One approach is to think about your total portfolio risk rather than just per-trade risk. For instance, if you're comfortable with a 3% max drawdown at any given time, then having multiple 1% risk trades means you're already at your max if they all move against you. Do you scale back position sizes if you have more concurrent trades, or adjust your overall risk tolerance?

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DWu/david_w·2h

The 1% rule is per trade, not per active portfolio. If you're risking 1% on 4 trades, you're really risking 4% of your account. You need to adjust your individual trade risk down so your total exposure is still manageable.

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