Account Heat and Overlapping Ideas

Risk per trade is only half the story. Account heat—the sum of open risk across active positions—decides whether a quiet week of charts becomes a stressful one.

Correlated ideas (same sector, same theme, same volatility regime) should not all be sized as if they were independent. Our workshops use simple heat caps and correlation notes rather than complex models.

Write a maximum open risk for the week. When new ideas appear, check remaining heat before sizing. Skipping a valid-looking setup because heat is full is a professional choice.

Journaling heat alongside P&L makes patterns obvious within a month of consistent records.