#RiskRewardRatio **Bitcoin Futures Trading Risk Management: A Structured Approach**

1. **Position Sizing & Stop-Loss Orders**

- **1-2% Rule**: Risk only 1-2% of total capital per trade. For a $10,000 account, this means $100-$200 risk per trade.

- **Stop-Loss Placement**: Use technical analysis (support/resistance, ATR) to set stops. Example: A 5% stop-loss on a $2,000 position (10x leverage) limits loss to $100 (1% of account).

- **Trailing Stops**: Adjust stops to lock in profits (e.g., 10% trailing stop after a 20% gain secures a 10% profit).

2. **Leverage Management**

- **Cap Leverage**: Use 5x-10x instead of 100x to reduce liquidation risk. Higher leverage requires smaller positions.

- **Margin Buffer**: Maintain excess margin to avoid liquidation during volatility. Calculate maintenance margin and monitor account equity.

3. **Diversification & Hedging**

- **Contract Expiries**: Spread trades across monthly/quarterly futures to mitigate expiry-specific risks.