How should I split my risk budget if I trade more than one strategy at the same time?

Set your total risk budget as a percent of your account, then give each active strategy a relative priority weight. The tool splits your total budget across strategies in proportion to those weights, in dollars and percent.

What if two of my strategies could both trigger on the same move?

This tool treats each strategy cap as independent. If your strategies can overlap on the same underlying or the same market event, also check the Correlated Position Risk Calculator, since your combined risk could run higher than the sum of the individual caps.

Multi-Strategy Risk Allocator: How Should I Split My Risk Budget Across Strategies?

Enter Your Strategies

Give a weight (any number greater than 0) to at least 2 strategies. Leave a weight blank or 0 to skip it.

Your Result

Enter your account size, total risk budget, and a weight for at least 2 strategies to see how the budget splits between them.

How this is calculated

Each strategy allocated risk equals your total risk budget multiplied by that strategy share of the total weight you entered across all strategies.
Weights are relative priorities, not fixed dollar amounts. A strategy weighted 2 gets twice the budget of a strategy weighted 1, regardless of what number you use for the weight itself.
Leave a strategy weight blank or at 0 to exclude it from the split.
This tool splits a risk ceiling across strategies on paper. It does not know whether two of your strategies could get triggered by the same market move at the same time, check the Correlated Position Risk Calculator if your strategies can overlap.

Risk & liability disclaimer: This calculator produces a mathematical estimate based on the inputs provided. It is not financial advice and does not guarantee any trading outcome or predict future prices. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation, always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.

How should I split my risk budget if I trade more than one strategy at the same time?

Enter Your Strategies

Your Result

How this is calculated

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