Do you size your positions by gut feel or based on the stop-loss distance?
For example: with an account of 10,000 USDT, a maximum loss of 1% per trade (100 USDT), and a stop-loss distance of 2%, the position’s notional value would be about 5,000 USDT.
If you open several positions in the same direction on correlated contracts, the risks add up, so you should also set a limit on your total position size.
Coin mentioned in the discussion: $BTC , currently at 84,269.17 (24h +1.39%).
What other topics would you like to learn about? Let me know in the comments.
For example: with an account of 10,000 USDT, a maximum loss of 1% per trade (100 USDT), and a stop-loss distance of 2%, the position’s notional value would be about 5,000 USDT.
If you open several positions in the same direction on correlated contracts, the risks add up, so you should also set a limit on your total position size.
Coin mentioned in the discussion: $BTC , currently at 84,269.17 (24h +1.39%).
What other topics would you like to learn about? Let me know in the comments.