Allardyce says the first month of the year is a difficult period in which to do business but believes his track record proves he can be trusted to spend wisely.
He told the Liverpool Echo: “Yes, but I've done very, very good business in January many times.
“This time it's not to save the club from relegation – we hope so anyway because we're not out of trouble – but certainly business in January has been a part of my escape at the last two clubs I've been at, Sunderland and Crystal Palace.
“And because of that judgement and the level of performance we got out of those players – which was much more than the players they replaced – was why everybody got better and the team got better so it's a very difficult window but your signings are critical.
“They have to be able to perform straight away, which is even more difficult, and I'm already talking about players that came in the summer that can't perform to the level and they've had all season to adjust and come together.
“When you buy one in January he is expected to hit the ground running and if he comes from abroad that is the risk you take.
“We are in a risk business and I calculate the risk to its minimum but it is always risky but I'm prepared to take that risk and live or die by that judgement."