🧰 Methods to Construct a Multi-Asset Danger Plan (Foreign exchange, Gold, Indices, Crypto)
🎯 The Lesson
Buying and selling a number of property appears like diversification.
However every market behaves otherwise — volatility, spreads, gaps, buying and selling hours, and danger profiles usually are not the identical.
If you happen to use one danger rule for all property, you’re mispricing danger and welcoming drawdowns.
Professionals use a multi-asset danger plan so each market is traded on equal danger, not equal lot measurement.
📊 1. Every Asset Has a Completely different Danger Character
| Asset | Volatility | Gaps | Unfold | Danger Profile |
|---|---|---|---|---|
| Foreign exchange (EURUSD) | Low–Medium | Uncommon | Tight | Steady |
| Gold (XAUUSD) | Excessive | Medium | Variable | Aggressive |
| Indices (NAS100) | Excessive | Excessive | Vast | Explosive |
| Crypto (BTC, ETH) | Excessive | Fixed | Vast | Harmful |
Identical lot measurement ≠ similar danger.
Danger should be normalized, not copied.
⚙️ 2. Set Completely different Danger Caps per Asset Class
Skilled baseline limits:
Foreign exchange: as much as 1–2% per commerce
Gold: max 0.5–1% per commerce
Indices: max 0.5–1% per commerce
Crypto: 0.25–0.5% per commerce (or keep away from completely)
If you happen to danger 2% on BTC like EURUSD, your account received’t survive volatility.
🧮 3. Normalize Danger Utilizing Cease Distance
At all times calculate measurement from danger, not tons.
Instance:
Account: $10,000
Danger: 1% = $100
Foreign exchange commerce
Gold commerce
Completely different markets, similar greenback danger.
That is skilled normalization.
🔗 4. Management Cross-Asset Correlation
Many property transfer collectively:
USD energy → EURUSD ↓, XAUUSD ↓, NAS100 ↓
Danger-off → Indices ↓, Crypto ↓, Gold ↑
Rule:
👉 Max 6% complete publicity throughout all correlated property
Higher for retail: 3–4% max
Foreign exchange + Gold + Indices in the identical route = one thought, not three.
🕒 5. Respect Buying and selling Hours Per Asset
Foreign exchange → commerce London & NY
Gold → keep away from Asia spikes
Indices → commerce money session solely
Crypto → beware weekends & skinny liquidity
Danger will increase outdoors optimum hours — scale back measurement or keep flat.
🛑 6. Set up a Portfolio Danger Cease
Portfolio guidelines utilized by funds:
Max each day loss: 2%
Max weekly loss: 4%
Max month-to-month drawdown: 8–10%
Hit the restrict → cease buying and selling, no matter asset
This protects your account from cross-market chaos.
🚀 Takeaway
Buying and selling a number of property doesn’t make you safer —
structured danger does.
A multi-asset danger plan retains each market on equal footing, prevents hidden correlation injury, and smooths your fairness curve throughout completely different circumstances.
Completely different markets.
Completely different guidelines.
Identical self-discipline.
📢 Be part of my MQL5 channel for extra buying and selling & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
