Best Portfolio Allocation Between AI Trading Bots & Active Trading

By Alex Assoune Oct 29, 2025

How much of a portfolio a trader allocates to active trading vs. automated/future bots depends on their risk tolerance, experience, and strategy. There’s no universal rule, but here’s a structured way pros often think about it:

1. Active (Manual) Trading

Pros usually allocate 40–70% of their portfolio to active trading.
Why? Manual trading allows flexibility for high-probability setups, reacting to news, and using discretionary judgment.
Risk is typically higher per trade, but position sizing is carefully controlled.
Best for: swing trades, day trades, or tactical moves around major market events.

2. Automated Trading / Bots / Futures

Often allocated 30–60% of the portfolio.
Bots are good for:
- Consistent, emotion-free execution
- Following systematic strategies
- Managing trades in markets that are open 24/7 (like crypto)
Risk per bot is usually smaller because it’s pre-programmed with stop-losses, take-profits, and risk management rules.
Some traders even dedicate a small portion (10–20%) for experimental strategies, letting algorithms run “side bets.”

3. Risk Management Considerations

Never overexpose: Total active + bot trades shouldn’t risk more than ~1–2% of the full portfolio on a single trade.
Diversification: Active trading is often short-term and high-volatility, while bots can provide steady, systematic gains.
Rebalancing: Periodically review bot performance; markets change, and a bot that worked last year might fail now.

Example Allocation

Type	Portfolio %	Notes
Active Manual Trading	50%	High probability setups, discretionary trades
Automated Bots/Futures	40%	Systematic, emotion-free execution
Experimental / Backup	10%	New strategies or high-risk opportunities

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About the Author: Alex Assoune

Alex Assoune (MS) is a global health and environmental advocate. He founded Panaprium to inspire others with conscious living, ethical, and sustainable fashion. Alex has worked in many countries to address social and environmental issues. He speaks three languages and holds two Master of Science degrees in Engineering from SIGMA and IFPEN schools.

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