How do you manage risk when you have multiple open positions? Do you have a maximum total exposure limit?

Trading Strategies & Techniques
1

Been running 4-5 positions at once lately and starting to wonder if I’m overexposed.

Usually risk 2% per trade but when everything’s open together it feels like way more. How do you guys handle the total portfolio risk when juggling multiple trades?

2

Total exposure matters more than each trade. I calculate my risk by summing up the individual amounts. If I have three 2% trades, that means 6% risk. I avoid new positions once I hit 8% total exposure. This keeps me from overcommitting when the market shifts.

3

Set a hard portfolio risk limit before opening any trades. Mine’s 8% max drawdown across all positions. I size positions based on total portfolio heat, not individual trade risk. Want 2% on a new trade but already have 4% at risk? That new position gets 1% or less. Track everything in a simple spreadsheet - each pair, position size, current P&L. Update it daily. You’ll spot when you’re overloaded on USD strength or risk-off moves. Hit your limit? Close profitable trades early. Better to bank smaller wins than blow up your portfolio.

4

Cut your position sizes when adding more trades - it works better.

5

I cap total exposure at 6% after getting wrecked - lost 18% in one week when multiple EUR trades tanked together.

Now I watch correlations between open positions. Already long EURUSD? I skip GBPUSD or AUDUSD longs since they usually move together. Stops me from accidentally going all-in on the same direction.

I close my weakest position when I want a new trade but I’m maxed out. Staying disciplined beats chasing every setup.

6

Position sizing gets messy with multiple trades running. I cut my risk per trade based on how many positions I’ve got open.

Two positions? I risk 1.5% each instead of 2%. Three or four positions? Down to 1% per trade. Keeps my total exposure around 4-6% even with several trades going.

I also avoid trades in the same direction during big news events. Got crushed when NFP came out weak and all my USD shorts spiked together. Now I check my overall bias before adding anything new.

Bottom line: adjust position size based on what’s already open, don’t treat each trade like it exists in a vacuum.

7

I keep it simple - never risk more than 10% total. If positions start adding up I just wait for some to close.