👤TradingBoat focuses on BTC and ETH contract trading, a trader who loves cryptocurrency!

Recently, many friends who trade contracts have asked me how to manage their positions. In this issue, I will give examples and explain them specifically. I hope my sharing will be helpful to you and allow you to make better trading strategies and trading behaviors!

Example

Trading Type: ETH

ETH price: 1600USDT

Principal: 5000 USDT = 3.125 ETH

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👉🏻Opening position calculation 1 (U is the unit of measurement)

Light position = 5000USDTX 0.5 times = 2500USDT --- 5000USDT X 1 times = 5000USDT

That is, light position, holding position is between 0.5-1 times of the principal

According to the 2% stop loss calculation for each loss, take 1x position and each loss is 100USDT /

5000U principal can be traded 50 times

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👉🏻Medium position = 5000 USDT X1 times = 5000 USDT --- 5000 USDT X2 times = 10000 USDT

That is, a medium position, holding between 1-2 times the principal

According to the 2% stop loss calculation for each loss, take 2 times the position. Each loss is 200USDT/

5000U principal can be traded 25 times

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👉🏻Opening position calculation 3 (U as the unit of measurement)

Heavy position = 5000USDT x 3 times = 15000USDT

That is, heavy position, holding 3 times of the principal

According to the 2% stop loss calculation for each loss, take 3 times the position, each loss is 300USDT/

5000U principal can be traded 16.6 times

🎈Summary: You don’t need to look at the leverage ratio or margin rate, just look at the relationship between the principal and the position, and ensure that the maximum loss of each transaction does not exceed 3%-5% of the principal

Because what is important in trading is not profit, but the fact that you can still exist in the market and that you still have capital before the bull market comes. So I always tell my friends that risk comes first, principal comes first, and profit comes second.

🛎In the second phase, I will manage the positions in ETH. Interested friends can continue to pay attention.