Risk per trade and portfolio heat

Risk per trade is what you lose if the stop-loss is hit; portfolio heat is that risk added up over all open trades.

What it means

Five open trades at 2% each put 10% of the account at risk together, more than any single trade suggests.

What to watch

The total of all open risks, especially when the trades are in coins that tend to move together.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.