CRYPTO of the week BTCUSD View unchanged - What position size?
Updated
BTCUSD 4H UPDATE - 15/05/2018
View unchanged from yesterday.
Stop raised to below 8,208.81 (risk free position with partial profit or reduced risk).
How to determine my position size when trading?
The agreed rule is that the maximum risk per trade (or set of trades) is 2% of the capital. So if I have USD5,000.00 I will risk maximum USD100.00.
So, if I bought BTCUSD at USD8,420.00 with stop USD7,800.00, I would have bought for USD1,358.06 bitcoin (0.16129032 bitcoin). So if I get stopped out, what represents 7.36 loss in BTCUSD is only 2% of my USD5k.
And if my target is say 11,955.00, that would represent 42% increase in BTCUSD but "only" 11.40% of my account which is not too shabby (minimum R:R ratio is 2).
If you were to buy for USD5k (all your capital), your risk would rise to 7.36% and reward to 42% of your capital. If you trade on margin with leverage, you can achieve higher return but you could blow your account very quickly.
A loss of 25% of capital needs a gain of 33.33% to break even.
A loss of 50% of capital needs a gain of 100% to break even. A spiral you never want to be in ...
Every week, for one particular cryptocurrency, in addition to the charts that I upload on TradingView, I will put the full comments and trade setup for different time frames:
- Daily on Sunday,
- 4h once a day during Asia session and
- 1h twice a day in Asia (post US) and Europe sessions.
This week 13/05/2018-19/05/2018, I propose BTCUSD
Disclaimer:
This content is provided for educational purposes only. The Trader's Corner is not registered as an investment adviser and the information shared on the website or any other medium is not meant to be a solicitation or recommendation to buy/sell any instrument. Any trades placed based on our content are at the own risk of the viewer. Trading include risks and loss of capital. Future trading results can never be guaranteed.
View unchanged from yesterday.
Stop raised to below 8,208.81 (risk free position with partial profit or reduced risk).
How to determine my position size when trading?
The agreed rule is that the maximum risk per trade (or set of trades) is 2% of the capital. So if I have USD5,000.00 I will risk maximum USD100.00.
So, if I bought BTCUSD at USD8,420.00 with stop USD7,800.00, I would have bought for USD1,358.06 bitcoin (0.16129032 bitcoin). So if I get stopped out, what represents 7.36 loss in BTCUSD is only 2% of my USD5k.
And if my target is say 11,955.00, that would represent 42% increase in BTCUSD but "only" 11.40% of my account which is not too shabby (minimum R:R ratio is 2).
If you were to buy for USD5k (all your capital), your risk would rise to 7.36% and reward to 42% of your capital. If you trade on margin with leverage, you can achieve higher return but you could blow your account very quickly.
A loss of 25% of capital needs a gain of 33.33% to break even.
A loss of 50% of capital needs a gain of 100% to break even. A spiral you never want to be in ...
Every week, for one particular cryptocurrency, in addition to the charts that I upload on TradingView, I will put the full comments and trade setup for different time frames:
- Daily on Sunday,
- 4h once a day during Asia session and
- 1h twice a day in Asia (post US) and Europe sessions.
This week 13/05/2018-19/05/2018, I propose BTCUSD
Disclaimer:
This content is provided for educational purposes only. The Trader's Corner is not registered as an investment adviser and the information shared on the website or any other medium is not meant to be a solicitation or recommendation to buy/sell any instrument. Any trades placed based on our content are at the own risk of the viewer. Trading include risks and loss of capital. Future trading results can never be guaranteed.
Note
BTCUSD 4H UPDATE - 16/05/2018View unchanged. refer to latest 1h review for detailed count.
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