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Correlated trading risk: when three positions behave like one bet

Trading gold, currencies and indices does not automatically diversify risk. The US dollar and yields may influence several positions at once.

Find the shared driver

For each trade note its hypothesized driver: dollar, rates, risk sentiment or an asset-specific event. Review direction, volatility and stop distance. Historical correlations change and cannot replace position-level risk measurement.

Journal review checklist

A journal should show both risk per trade and aggregate exposure to a shared scenario. For each trade note its hypothesized driver: dollar, rates, risk sentiment or an asset-specific event. Review direction, volatility and stop distance. Historical correlations change and cannot replace position-level risk measurement.

What to avoid

A journal should show both risk per trade and aggregate exposure to a shared scenario. Trading gold, currencies and indices does not automatically diversify risk. The US dollar and yields may influence several positions at once.

Explore Disciply

Compare your journal data, read the Blog guides and explore the available tools at https://disciply.it/trading-tools/.