#RiskManagementMastery #RiskControl
I mainly enter trades at 2-3% of the deposit with 20X leverage on cross-margin.
You can choose different leverages, and the risk will be the same, with identical market movement, Roe is different, but when achieving goals for the trade, the profit or loss will be the same for everyone.
✅Leverage 10, in the trade 4-8% of the deposit.
✅Leverage 40, in the trade 1-2% of the deposit.
✅Leverage 100, in the trade 0.4-0.8% of the deposit.
And so on…..
🛑🛑🛑
if the trade is IN THE RED.
How do I resolve the situation?
At the key level, I can average down.
For averaging, I can allocate such a percentage of the deposit so that no more than 5% of the deposit is in the trade.
Let's say I initially entered at 2%.
In case of a drawdown, I can average down 2 or 3 times on 3% of the deposit in total.
Why?
I increase the likelihood of closing the trade in + or a smaller minus, if the market has completely reversed.
‼️‼️‼️
Thus, with 5% of the deposit in 1 trade with 20 leverage - NO liquidation (considering that this is in the absence of other trades).
😱😱😱NO STOP-LOSS.
Usually with such trading, I don't set a stop-loss. They are often taken out 😉.
But still sometimes, when I am already in profit and don't want to look at the chart anymore, or I'm busy, or the trade itself seems very risky to me - I set it and in case my trades become public, I will write this down!
⭐⭐⭐CROSS-MARGIN
It is the % of the deposit in the trade that allows managing risks.
With such a strategy, almost all trades close in "+", in my experience there are trades that were in drawdown of -1000% ROI and I still waited for them to be in profit. If those trades had a larger %, I would have been liquidated.
I do not recommend opening more than one trade, only splitting this % of the deposit into trades (2.5% maximum in one and 2.5% in another).
...
I did not come to this strategy right away; there were strategies where liquidation was below the asset's minimum price, there were positions with 10-20% of the deposit. And all this in the long term - LIQUIDATION. Yes, it accelerates quickly. But you can lose even faster 😥.
I don’t pretend to be the smartest and most experienced; I’ve had several liquidations for different amounts. I know what it feels like - Tilt, FOMO, the feeling that the market is going specifically against you.
I was asked for PnL from Binance. 4 years of active trading, I am still not in the + according to Binance's statistics on futures, because the losses from liquidations were very large. Fortunately, I withdrew money from profits 🤪.
But now with such risk management, I am slowly (of course), but STABLY bringing the overall statistics to +.
