Portfolio-Style Risk Diversification in Forex Smart Money doesn’t always trade one pair. They build what’s known as a "micro-portfolio" of correlated setups based on: One core narrative (e.g., USD strength) Multiple confluence points across 2–3 related pairs (e.g., EURUSD, GBPUSD, DXY) Here’s how it works: If EURUSD shows a clean BOS + OB during NY Killzone → Risk 1% If GBPUSD shows similar structure but is less clean → Risk 0.5% DXY (inverse bias) shows imbalance or inducement → Risk 0.25% This is not overtrading — it’s risk diversification across correlated opportunities. Losses are spread. Wins often stack due to alignment. This model mimics hedge fund allocation — exposure is weighted, not flat. Smart Money avoids putting 2% risk on one setup. Instead, they allocate capital across multiple, data-aligned expressions of the same bias, making them more robust and less exposed to single-trade failure. #CommunityAMA