Light Alloy can work as portable application. To do it, you have to visit Preferences \ System and check "Save settings in application folder" option.
"Where to save settings" in Basic Options do exactly the same:
Pay attention: in terms of portability, you must NOT change anything in "File Types" category (even just visit it!). If you happend to visit this category, you have two options: or file associations will be overwritten (i.e. Light Alloy will proceed registry write access), or press "Cancel" (before it visit any other category, player will remember where you was last time before closing preferences menu) and lost all changes that you already made.
When portable mode is enabled, you will see LA.portable file in application folder. You cannot delete this file, because it will lead to function Light Alloy in normal (non-portable) mode.