Portfolio heat — the risk you actually have on
Short · Risk & sizing · October 7, 2026
Olympia publishes educational content for learning purposes only. Past performance is not indicative of future results. Nothing here is investment advice.
Trade by trade: entry minus stop, times the shares, added up. Five trades each sized to lose $250 is $1,250 on the line — and if they all lose on the same day, that's 5% of a $25,000 account at once. One trade stinks; heat is what puts you on the canvas.
Part of the full lesson: How much should I risk across all my trades? Portfolio heat
The lesson in writing
They looked fine. You were confident. And then the worst happened: they all lost on the same day.
How it's worked out
Trade by trade: entry minus stop, times the shares, and then you add them up.
Five trades each sized to lose two hundred and fifty dollars — and guess what? You lost $1,250 all in the same day, because every single one of them bailed. That's 5% of $25,000 gone at once.
Where Olympia calculates it
Olympia has something built in to show the risk on each trade where you log it — from the stop you logged on each position in your own book.
The total isn't on the screen yet, because that sum is yours. One trade stinks; heat is what puts you on the canvas, and too much heat keeps you on the canvas.
Correlation, the cap and the rest of the arithmetic are in How much should I risk across all my trades? Portfolio heat.
Example numbers, not a member's: a $25,000 account with five trades each sized to lose $250. The totals are arithmetic on those inputs.
