Crypto Trivia 📚 Position Sizing
For example: with total funds of 10,000 USDT, a maximum loss of 1% per trade (100 USDT), and a stop-loss distance of 2%, the position’s nominal value would be about 5,000 USDT.
A common position-sizing formula: position nominal value ≈ total funds × risk per trade ÷ stop-loss distance.
When I first got into crypto, I thought knowing how to read candlestick charts was all I needed. Later, I realized that rules are the first lesson.
By the way: $BTC is at 82,655.8 (24h +0.12%).
#BTC
Crypto assets are volatile, so use leverage with restraint.
For example: with total funds of 10,000 USDT, a maximum loss of 1% per trade (100 USDT), and a stop-loss distance of 2%, the position’s nominal value would be about 5,000 USDT.
A common position-sizing formula: position nominal value ≈ total funds × risk per trade ÷ stop-loss distance.
When I first got into crypto, I thought knowing how to read candlestick charts was all I needed. Later, I realized that rules are the first lesson.
By the way: $BTC is at 82,655.8 (24h +0.12%).
#BTC
Crypto assets are volatile, so use leverage with restraint.