1. The loss of each position after being stopped out accounts for a maximum of 2% of the total funds

You have 20000u, and you have 4 positions. The maximum loss of each position after being damaged should be 400u. If all are lost, you will only lose 1600u in this round, which is 8% of the total contract funds.

1. Consider the maximum loss you can accept for each position, such as 2%. If your daily contract trading win rate is above 80%, you can increase the ratio appropriately. But it is not recommended to exceed 5%.

2. Consider your loss after all positions have lost money, and decide the number of your positions. For example, the 1600u just now is 8% of your assets. If you press 1 to operate, and encounter a #BTC big drop, all will be lost. With only 4 positions, the loss is as high as 20%.

Maybe you can accept a loss of up to 50% in each round, and you can open 25 positions with a 2% loss for each position, or 2 positions, with a loss of 5000u for each position.

The premise of all these is to strictly use the long and short tools of trading view to open positions. Do not use USDT to place orders, but use position volume to place orders.

 

2. Contract funds should account for a maximum of 20% of total funds

1. If the total capital is 20,000u, use 4,000 to make a contract. The loss of one order is 2%, which means the loss of one order should not exceed 80u. That is 0.8% of your total capital.

2. The other 80%, or 16,000u, is used for pure spot or robots. Robots are also divided into contracts and spots. It can be made more detailed, such as reserving a part to buy #BNB for mining. Binance does a good job in this regard, and there are other financial management products that also have stable returns.

Finally, let me summarize it briefly. Good fund management and psychological management can make you earn more steadily and lose less. But all of these are based on good trading skills.

So every time Brother M@TraderM shares more about the first two, don’t think: Isn’t it because he does a good job in risk control that he can make money? Wrong, without indicators, I feel that if I only rely on risk control, although I won’t lose as much as in the past, but without excellent trading analysis, you will lose too many opportunities.

The cryptocurrency market itself is a high-risk, high-return market. My personal goal is to achieve short-term medium returns with low risks.

No one can guarantee how much you can earn or how many times you can make back your investment. But I guarantee that if you are greedy once when doing a contract, you will lose money. If you are not skilled in technology, but have a large amount of capital, and can use indicators to judge the general direction accurately, it is recommended to do spot trading.

Without excellent indicators to guide trading analysis, the best way is to buy spot goods and leave them alone. Short-term low returns and low risks.

But then again, how many people here can make a long-term spot layout for several years? The ETH wallets that have been silent for many years only sold all of them at around 3200 when they woke up, and they didn’t see them selling at 5000 points. Those who bought Bitcoin from 200 to 2000 must have been laughing at that time, but what about now?

I am LEO, an ordinary trading analyst in the Methodalgo community. Follow X to learn more trading skills:

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