Hi, I will be as brief as possible and try to convey the idea in the simplest words. Let's talk about money, risk management during trading with a leverage on BITMEX, or on any other exchange where there is a leverage.
The bottom line is that trading with a leverage, especially with a high probability (as it seems at first glance) that you will win or lose about 50/50. But in fact it is not so, according to my observations the probability of earnings when placing orders is much lower than 50%. In General, if you trade and do not think, then out of 10 trades will be profitable 2-3. To have 5 profitable trades and 5 exits on the stop, you will have to work, and to do 7/10, you will have to understand the market.
Always keep in mind that under no circumstances will 10 out of 10 trades be profitable. People make mistakes, especially traders, and especially when the market is constantly endure foot false breakouts, so money management is the first thing you need to KNOW and USE every trader.
Below I will tell you a conservative version of trading, using which you will never lose a Deposit.
So, let's say you have 5 BTC , they are and they are not necessarily on the BITMEX exchange. Let's say the deal should be equal to 2% of the depot. This is 0.1 per trade. Next , you start on the exchange say 0.5 BTC , and you know that from your depot a valid transaction is 2%, and each time you enter 0.1 btc . As time passes , you withdraw those 0.5 BTC , and still trade 0.1 per trade. Conservative? Yes.
Now about false breakdowns. I found out by analyzing about 20 false movements that the average rate that you want to lay is 1.2% of the current price when there is a false breakout. So you have to close the foot above this value, not below! This suggests that the shoulder 100x can not be opened for any reason, only when there is a 100% directional movement, because the elimination with such a shoulder comes through 30 points, and this is about 0.6% at the moment. The middle shoulder I recommend using is 10x-25x. Do not forget that you enter only 2% of the Deposit.
Another feature with the liquidation. It can be used in 2 ways:
1. Stop loss because the liquidation price will not exactly slip and you will close at a loss, but this loss will be only 2% of the depot.
2. Put a stop before the liquidation of a few points, this life hack will allow you to leave about 25% of the trade.
Emotions
Remember, as soon as you enter the floor of the depot, and close the deal in plus, you decide to do so always, counting the money for a new Mercedes. But here lies the biggest problem-in the end you will lose either all earned or all. You decide to recoup and re-enter the floor or the entire depot and liquidated. Greed, the pursuit of profit-greatly interfere with trading, believe me. Trade impartially, with a cold calculation, entering 2% of the depot in the transaction.
Understand how serious this is. The loss of money causes great emotional experiences!
And now a couple of technical points:
1. As soon as the trade you entered starts to show a plus, immediately move the stop loss to the breakeven zone (BOO). Always ready to go to BU.
2. Take profit on Take Profit points, usually according to this scheme: 50% of the position on TP1, 30% on TP2 and then the remaining. Often the signals price does not reach 3-4 TR, so it is better to take profit on TR 1 and 2.
Summing up I will tell, remember, opening the transaction at least once on 30-50% of a Deposit, you issue to yourself a sentence for loss of a trade depot. When opening a deal at 30%-50%, you decide that you are ready to lose the Deposit. Always follow this principle. I wish you successful trading!
P. S: If the article was useful for you , Merit will not hurt...
