← Glossary
Max portfolio heat
Max portfolio heat caps the sum of open risk across all open positions, not just the one being sized — a new plan's share count is reduced if adding it would push total heat over this limit, even if the trade fits within its own risk-per-trade cap. It's the constraint that keeps several individually reasonable trades from combining into an account-level risk that's too large.
This explains what max portfolio heat measures. It isn't investment advice — see the disclaimer.