Position sizing calculation formula
To control losses, calculate the trade volume before opening it:
Practical example:
Deposit: $1,000
Permissible risk (1%): $10
Entry price for BTC: $60,000
Stop-Loss: $58,800 (distance to the stop — 2%)
Calculation:
\text{Position size} = \frac{10}{2} \times 100 = 500\$
Your final position size should be $500.
This can be $500 from isolated margin without leverage (1x).
Or $50 of your own funds with 10x leverage ($50 \times 10 =$500).
In both cases, when the Stop-Loss is triggered, you will lose exactly $10 (1% of the deposit).
💡 3 survival rules in the crypto market
First Stop-Loss, then entry. Do not open a position unless you have already determined the level at which the scenario is invalidated.
Leverage doesn’t increase profit by itself. Leverage is only a tool to regulate margin. Evaluate the position by its full nominal value in dollars, not by the leverage amount.
The three-stops rule. If you get 3 losing trades in a row in a single day — close the terminal. Trying to “make it back” immediately on emotions leads to account liquidation.
To control losses, calculate the trade volume before opening it:
Practical example:
Deposit: $1,000
Permissible risk (1%): $10
Entry price for BTC: $60,000
Stop-Loss: $58,800 (distance to the stop — 2%)
Calculation:
\text{Position size} = \frac{10}{2} \times 100 = 500\$
Your final position size should be $500.
This can be $500 from isolated margin without leverage (1x).
Or $50 of your own funds with 10x leverage ($50 \times 10 =$500).
In both cases, when the Stop-Loss is triggered, you will lose exactly $10 (1% of the deposit).
💡 3 survival rules in the crypto market
First Stop-Loss, then entry. Do not open a position unless you have already determined the level at which the scenario is invalidated.
Leverage doesn’t increase profit by itself. Leverage is only a tool to regulate margin. Evaluate the position by its full nominal value in dollars, not by the leverage amount.
The three-stops rule. If you get 3 losing trades in a row in a single day — close the terminal. Trying to “make it back” immediately on emotions leads to account liquidation.