Does this account for correlated positions?

No. The math assumes each open position is independent. If your positions move together, such as several stocks in the same sector, your combined risk is actually higher than the number this tool generates.

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How many positions should I allow myself to have open at the same time?

Q: How many positions should I allow myself to have open at the same time?

Generates a suggested maximum number of concurrently open positions from your max risk per trade and total portfolio risk cap, adjusted for how closely you can monitor multiple positions.

Discipline isn't a personality trait. It's a system you build so willpower is optional.

Jason Parker, Founder of Trading Habits

Enter Your Risk Limits

Use the same per-trade and portfolio risk percentages you already use for sizing individual trades.

Your Result

Fill in the fields on the left and click Generate to see a suggested max number of open positions.

How this is calculated

The risk-based max equals your max total portfolio risk percentage, divided by your max risk per trade percentage, rounded down to a whole position.
This assumes your open positions are independent of one another. If two or more positions are correlated, meaning they tend to move together, your true combined risk is higher than this math shows. Use the correlated position tool linked below to check that.
If you selected that you can't actively monitor more than a couple of positions closely, the suggested number is capped lower than the math alone would allow. Watching a position closely matters more once it's actually open, not just when it's sized correctly.
This is a personal planning rule, not a limit enforced by your broker or any exchange. Nothing stops you from opening more positions than this suggests.

Risk & liability disclaimer: This tool assumes your open positions are independent of one another. If your positions are correlated, your true combined risk is higher than this math shows. 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. Trading involves risk of loss, and you could lose some or all of the capital you trade with.

How many positions should I allow myself to have open at the same time?

Enter Your Risk Limits

Your Result

How this is calculated

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