Correlated trades and total exposure

Name the driver behind each trade

Write the reason the trade should work in one sentence. Then identify common drivers across the open positions: a currency, a broad equity move, interest-rate expectations or a commodity theme. The purpose is not to calculate a perfect statistical relationship; it is to recognise when several tickets depend on the same event.

The direction matters. Buying a pair with one currency in the numerator can express a similar view to selling a different pair where that currency is in the denominator. Symbol names alone can obscure the connection. Write the economic view in plain language before deciding that two trades offset or diversify one another.

Build a planned-loss table

For each position, record current size, stop distance, point value, intended stop loss in account currency and relevant costs. Group related ideas and total the amounts. Include pending orders that could trigger during the same move. If an order has no defined exit plan, its risk is not usefully represented by a zero in the table.

In a hypothetical account with $2,000 of room to a personal session stop, three related positions at $400 each use $1,200 of intended stop risk. Another order at $500 would bring the group to $1,700 before costs. That does not prove the group is safe: fills can differ, the relationship can change and the account's contractual floor may be nearer than the personal estimate.

Stress a common adverse move

Ask what happens if the shared driver moves sharply against all the positions. Use each instrument's own specification rather than multiplying a generic percentage across unlike contracts. Compare the combined account effect with remaining daily room, maximum-loss room and any simulated funded protective control.

Also test an imperfect hedge: one leg fills and the other does not, or one market gaps while the other is closed. Two positions intended to offset may leave substantial temporary exposure. A hedge label does not guarantee a stable relationship, and hedging or copying across accounts can raise separate prohibited-conduct questions under the applicable terms.

Do not turn a historical correlation into a promise

A correlation estimate describes a particular data sample, frequency and period. It can look different on hourly and daily returns, and it can change as market conditions change. A value from a chart tool is useful context, but it does not establish a fixed future response or a guaranteed offset during stress.

For a practical rule, you may choose to cap combined risk by theme or trade idea in your own plan. That is a trader-defined control, not a new MultiFunded percentage restriction. Document the rule and test how it changes the strategy rather than claiming diversification benefits without measuring the resulting exposures.

Update exposure as trades change

A partial close, a moved stop or a newly triggered order changes the basket. Recalculate after those events and before adding another idea. Several strategies or EAs sharing one account need a common exposure view; otherwise each can behave as if it is trading an empty account while the total risk grows.

In the journal, review results by theme as well as by ticket. A day with five losses may contain one repeated market error rather than five independent tests. Recognising that distinction can improve your review and stopping conditions. It does not imply a particular trade direction; it gives you a more accurate description of the risk already taken.

Key takeaways

• Map common drivers before counting symbols as diversification.
• Sum planned losses for repeated and related ideas, including pending orders.
• Treat correlation as a changing observation, not a guaranteed hedge.

Sources and rule check

MultiFunded-specific details were checked against the programme configuration and rulebook on 23 October 2026. Read the conditions attached to your own account before trading; educational examples do not predict results.

• MultiFunded programme comparison — current phase targets and programme limits.
• MultiFunded trading rules and Terms — definitions, restrictions and reward conditions.