Correlated Altcoin Exposure: A Worked Crypto Example With Fees Included
Three altcoin longs with separate stops look like three bets. When they fall together, they are one bet at three times the size.
Short answer
Correlated altcoin positions should be sized as one combined exposure. Example: a $50,000 account with a 1% ($500) risk limit opens three $10,000 alt longs, each with a 5% stop. Separately each risks $500; if a market-wide drop hits all three stops together, the loss is $1,500 plus ≈ $30 in fees and ≈ $30 in slippage — about $1,560, or 3.1% of the account. If the alts move together, cap the group at your single-trade risk, or reduce each position to one-third.
Worked example
| Step | Value |
|---|---|
| Account / risk limit | $50,000 / $500 |
| Positions | 3 × $10,000 alt longs |
| Stop | 5% each → $500 each |
| Fees (0.05% × 2 × 3) | ≈ $30 |
| Slippage (0.1% × 3) | ≈ $30 |
| All stopped together | ≈ $1,560 (3.1%) |
| Correlation-aware size | ≈ $3,300 each |
Measuring the group
Group positions by their correlation with BTC or with each other over a recent window, and apply the risk limit to the group. Correlation rises in sell-offs, which is exactly when stops cluster.
Conclusion
Related: BTC Beta in Altcoin Positions: A Worked Crypto Example With Fees Included, Portfolio Heat: A Worked Crypto Example With Fees Included.
Plan the same calculation with ChartsPod's position planner.
Open the ChartsPod terminalCorrelated altcoin positions should be sized as one combined exposure.
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Open a ChartsPod workspaceQuestions readers ask
Are three altcoin trades three bets?
Not if they're highly correlated.
How should I size them?
Cap the group at your single-trade risk.
When does correlation rise?
Usually in sell-offs.
Sources and methodology
Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).
- Bybit: Liquidation process — mark price and margin modes.
- ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.
This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.
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