> ## Documentation Index
> Fetch the complete documentation index at: https://www.emoguardian.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Copy of RPTC Calculations

RPTC is calculated by analyzing trades executed within a defined time window and measuring how strongly they are correlated with the trader’s current open positions.

Each closed trade within the time window contributes to the RPTC based on its correlation with the active trades. Highly correlated trades carry a greater weight, while weakly correlated have smaller correlation.

If the RPTC associated to an open trade exceed the defined limit, the trade will be immediately flattened.

### CORRELATIONS  OVERVIEW

Correlation across different symbol is calculated based on two parameters:

* CORRELATION ASSUMPTION
* KNOWLEDGE ASSUMPTION

The correlation assumption fixes how much we assume symbols are correlated between each other.

The knowledge assumption, is our assumption on how cross symbols correlations are actually treated (by prop firms). \
If we want to "play safe" the best solution is to assume high correlations and to set knowledge assumption to "strict".

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