Study Notes | Position Sizing
① Risk per trade is the amount you would lose if a trade hits its stop-loss, roughly equal to the position’s notional value multiplied by the stop-loss distance as a percentage.
② A common position-sizing formula: position notional value ≈ total capital × risk per trade ÷ stop-loss distance.
③ Before placing an order, write down three numbers: the stop-loss price, the maximum amount you’re willing to lose on the trade, and the resulting position size.
$BTC 79712.52（-1.02%）
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① Risk per trade is the amount you would lose if a trade hits its stop-loss, roughly equal to the position’s notional value multiplied by the stop-loss distance as a percentage.
② A common position-sizing formula: position notional value ≈ total capital × risk per trade ÷ stop-loss distance.
③ Before placing an order, write down three numbers: the stop-loss price, the maximum amount you’re willing to lose on the trade, and the resulting position size.
$BTC 79712.52（-1.02%）
#BTC