Professional Position Sizing & Risk Management System

Risk Management Strategy Overview

Systematic approach to position sizing with real-time margin requirements

Essential Trading Parameters

1%
Risk Per Trade
2 ATR
Stop Loss Distance
20 Days
Entry Breakout
10 Days
Exit Signal
4 Units
Max Per Market
20%
Max Total Risk

Position Sizing Formula

Contracts = (Equity × 0.01) / (ATR × Point Value × 2)

Data Management & Updates

Import, export, and backup your market data

Data Import/Export

Export Current Data

Download all current market prices and margins as CSV

Import Updated Data

Upload a CSV file with updated prices and margins

Download Template

Get a blank CSV template with all fields

Data Sources

Official Exchange Websites

Real-Time Data Providers

Margin Requirements

Position Sizing Calculators

Calculate optimal position sizes with current market prices and actual margin requirements

Position Size Calculator

Portfolio Risk Monitor

Market Correlations Guide

Detailed correlation relationships between specific futures contracts

Correlation Analysis

Energy
Metals
Agriculture
Currencies
Cross-Market
Inverse
Market 1 Market 2 Correlation Relationship Trading Note
Crude Oil (CL) Gasoline (RB) +0.92 Very Strong Positive Never hold more than 2 units combined
Crude Oil (CL) Heating Oil (HO) +0.89 Very Strong Positive Refined products move with crude
WTI Crude (CL) Brent Crude (BZ) +0.95 Near Perfect Consider as same position
Natural Gas (NG) Crude Oil (CL) +0.35 Weak Positive Can trade both with proper sizing
Gasoline (RB) Heating Oil (HO) +0.87 Very Strong Positive Both are refined products

Understanding Correlation Values

  • +0.90 to +1.00: Very strong positive - treat as same position
  • +0.70 to +0.89: Strong positive - limit combined exposure
  • +0.50 to +0.69: Moderate positive - monitor combined risk
  • +0.30 to +0.49: Weak positive - acceptable to trade both
  • -0.30 to +0.29: No significant correlation
  • -0.50 to -0.30: Weak negative - slight hedge effect
  • -0.70 to -0.50: Moderate negative - good diversification
  • -0.90 to -0.70: Strong negative - natural hedge

Trading Rules & Guidelines

Systematic rules for consistent risk management

Position Limits by Correlation

Correlation Range Maximum Combined Units Example
0.90 to 1.00 2 units total CL + BZ = max 2 units
0.70 to 0.89 3 units total GC + SI = max 3 units
0.50 to 0.69 4 units total 6A + HG = max 4 units
0.30 to 0.49 6 units total ES + CL = max 6 units
Below 0.30 No limit Full diversification

Risk Management Rules

Correlation-Based Risk Limits

  • Never exceed correlation limits even if total risk < 20%
  • Check correlations before adding any position
  • Review correlation changes weekly
  • Exit positions if correlations strengthen beyond limits
  • Use inverse correlations for portfolio hedging

Important Disclaimer

RISK DISCLOSURE: Trading futures involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results.

DATA ACCURACY: While we strive for accuracy, market data and correlations change constantly. Always verify current information before trading.

NO GUARANTEE: The Alsanaviss system is provided for educational purposes only. No guarantee of profitability is made or implied.

© 2025 Alsanaviss. All rights reserved. Unauthorized reproduction prohibited.