Risk management in practice 📉
$BTC is currently at ~$83,935, with weekly support around ~$79,800 and resistance around ~$84,168. Let’s look at the numbers.
Example account: 100,000 MT. Golden rule: risk 1% per trade, or 1,000 MT.
1) Put your stop at a structural level, not a round number. You enter at $83,900; support is at $79,800, so your stop goes BELOW it — e.g. $79,500. Never at the “nice” number of $80,000, where everyone puts their stop and the market will sweep them.
Stop distance: 83,900 − 79,500 = $4,400 (~5.2%). Position size = 1,000 ÷ 5.2% ≈ 19,230 MT. The price can drop 5% and you’ll only lose 1%.
2) Minimum risk/reward ratio: only enter if the target is at least 2x your risk. Target = 83,900 + 2 × 4,400 = $92,700. A 1:2 ratio — even if you’re right on half your trades, your account grows.
3) Five small stop-outs are better than one all-in. If you lose 5 trades in a row while following the 1% rule, you lose 5%. An all-in position with no stop that drops 5% loses the same amount in a single trade — and two of those would wipe out your account.
Preserving capital is strategy number one. Do the math first, dream about the profits later.
#GestaoDeRisco #CriptoVisao #Bitcoin
$BTC is currently at ~$83,935, with weekly support around ~$79,800 and resistance around ~$84,168. Let’s look at the numbers.
Example account: 100,000 MT. Golden rule: risk 1% per trade, or 1,000 MT.
1) Put your stop at a structural level, not a round number. You enter at $83,900; support is at $79,800, so your stop goes BELOW it — e.g. $79,500. Never at the “nice” number of $80,000, where everyone puts their stop and the market will sweep them.
Stop distance: 83,900 − 79,500 = $4,400 (~5.2%). Position size = 1,000 ÷ 5.2% ≈ 19,230 MT. The price can drop 5% and you’ll only lose 1%.
2) Minimum risk/reward ratio: only enter if the target is at least 2x your risk. Target = 83,900 + 2 × 4,400 = $92,700. A 1:2 ratio — even if you’re right on half your trades, your account grows.
3) Five small stop-outs are better than one all-in. If you lose 5 trades in a row while following the 1% rule, you lose 5%. An all-in position with no stop that drops 5% loses the same amount in a single trade — and two of those would wipe out your account.
Preserving capital is strategy number one. Do the math first, dream about the profits later.
#GestaoDeRisco #CriptoVisao #Bitcoin