Should position size be based on intuition or calculated from the stop-loss distance?
Per-trade risk is the amount you lose when a trade hits its stop-loss, approximately equal to the position’s notional value multiplied by the stop-loss distance as a percentage.
Here’s the key takeaway: before placing an order, decide on three things: the stop-loss level, the maximum amount you’re willing to lose on the trade, and the position size calculated from those figures.
By the way: $BTC current price 72179.99, 24h -2.12%.
Every potential return comes with corresponding risk, so take a close look at the worst-case scenario.
Per-trade risk is the amount you lose when a trade hits its stop-loss, approximately equal to the position’s notional value multiplied by the stop-loss distance as a percentage.
Here’s the key takeaway: before placing an order, decide on three things: the stop-loss level, the maximum amount you’re willing to lose on the trade, and the position size calculated from those figures.
By the way: $BTC current price 72179.99, 24h -2.12%.
Every potential return comes with corresponding risk, so take a close look at the worst-case scenario.