The Multi-Strategy Playbook
Quick answer: adding a second strategy does not raise your expected return — it splits the same risk budget across two sources. What it can buy is a smoother curve and shallower drawdowns, but only if the two do not win and lose on the same days. This free 15-page playbook shows how to split the risk, how to test whether the pair actually diversifies, and when to switch one off.
What you get
- The risk budget table — why two systems run at 0.5% each and not 1% each, and the floor that limits how many you can run at all.
- The overlap test — a ten-minute check on twelve months of results that tells you whether the pair is worth combining.
- Correlation and drawdown — what combining actually does to your worst stretch, from “no benefit” to “large reduction”.
- Choosing the second system — the five axes of real difference, and the fake differences that fool people.
- Manual plus automated — why this pairing overlaps least, and the one discipline it demands.
- Account-level versus system-level limits — which controls must be shared or you double every protection you thought you had.
- Switch-off triggers — five written criteria decided before anything goes wrong.
- Five ways this goes wrong, including the quiet one: blended logs.
- A printable multi-system tracker with the allocation sheet and overlap score.
Who it's for
Traders thinking about adding a second strategy, and anyone already running two who cannot say which one is carrying the account.
Inside the playbook
| Chapter | What it covers |
|---|---|
| 1–2 — The budget | What combining buys you, and splitting rather than stacking risk |
| 3–4 — The test | The overlap test and what correlation does to drawdown |
| 5–7 — The build | Choosing the second system, manual plus automated, shared limits |
| 8–9 — The exit | Switch-off triggers and the five failure modes |
| 10–12 — Tools | Printable tracker, FAQ and glossary |
Frequently asked questions
Is it really free?
Yes. Add it to your cart at $0 and the download link arrives by email straight after checkout.
What format is it?
A 15-page PDF, readable on desktop, tablet and phone.
Do I make more money running two systems?
Not from the combination itself. You gain consistency and shallower drawdowns, which is usually more sustainable.
How many systems can I realistically run?
Two for most people; three if at least one is automated. Chapter 2 has the sizing test that sets your own limit.
Can both systems trade the same instrument?
Yes, provided their signals do not coincide in time. If they do, you are holding one position at double size.
Disclaimer: educational content only. Cortex Next is not a financial service, does not manage money and guarantees no results. All figures are illustrative and approximate. Trading involves risk of loss.
