Allocated Capital
Allocated capital defines the maximum amount of capital a strategy is allowed to use.
It is a hard limit.
Aurono will never exceed it.
What Allocated Capital Is
Section titled “What Allocated Capital Is”Allocated capital represents:
The maximum currency amount this strategy may allocate to buys over time.
It defines the budget for a strategy.
How Allocated Capital Is Used
Section titled “How Allocated Capital Is Used”Each time Aurono executes a buy:
- Capital is reserved for the strategy
- The remaining available allocation is reduced
When sells occur:
- Capital is released back to the strategy
- Available allocation increases accordingly
Allocated capital tracks net exposure, not trade count.
Hard Enforcement
Section titled “Hard Enforcement”Aurono enforces allocated capital strictly:
- No borrowing
- No margin
- No overdrafts
- No cross-strategy usage
If insufficient unallocated capital remains:
- Buys are skipped
- No partial buys are placed
This behavior is intentional.
Relationship With Order Sizing
Section titled “Relationship With Order Sizing”Order sizing must fit within allocated capital.
Example:
- Allocated capital: €1,000
- Buy amount: €200
At most:
- 5 buy orders can be active at the same time
If only €150 remains available:
- No buy occurs
Aurono does not adjust order sizes.
Multiple Strategies
Section titled “Multiple Strategies”Each strategy has its own allocated capital.
Strategies:
- Do not share capital
- Do not borrow from each other
- Operate independently
This ensures isolation and predictable behavior.
Allocated Capital Is Not Exposure
Section titled “Allocated Capital Is Not Exposure”Allocated capital does not guarantee:
- Full investment
- Continuous buying
- Immediate deployment
It only defines the maximum allowed usage.
Aurono uses capital only when conditions are met.
Common Misunderstandings
Section titled “Common Misunderstandings”“Why did it stop buying?”
Allocated capital was fully used.
“Why didn’t it buy a smaller amount?”
Aurono does not place partial orders.
“Why is some capital idle?”
Conditions for buying were not met.
Why This Matters
Section titled “Why This Matters”Allocated capital provides:
- Risk containment
- Predictable limits
- Strategy isolation
- Protection against runaway execution
It ensures strategies remain bounded and controlled.
Key Takeaway
Section titled “Key Takeaway”Allocated capital defines how much a strategy is allowed to use, nothing more.
Aurono will:
- Respect this limit at all times
- Never exceed it
- Never attempt to optimize around it
Next Page
Section titled “Next Page”Continue with:
Common Mistakes
/strategy-builder/common-mistakes
This page ties everything together by addressing frequent configuration misunderstandings.