Bitcoin futures trading - looking for advice

[CSquared Collective]

Looking for advice from veteran bitcoin futures traders - I assume futures traders attempt to capture short to medium trends in both directions, up and down. Further assume that one can't always be right and will have profit target/exits and stop losses. But how about trade sizing?

Assume you have $100,000. How would you size each trade?

[jackg]

I size based on potential loss and confidence.

I normally put no more than 10% potential loss on each trade and ensure my profits will at least cover the loss (most weeks I'm about 75% accurate but in some it can drop to 60 so it's good to be pessimistic).

Confidence drops if my doubt is over. A certain threshold or if I've had a stop get triggered - I'll send tests out at 1% if I have two successive stop triggers normally.

[AicecreaME]

A $100,000 is good on cross margin in my opinion, and low leverage if you'll play it safe. Bitcoin futures trading might be hard because of high volatility, and so far I only makes profits on scalping it, not day trading, but I guess it depends on what strategy will suit you. If you want, you could also spend some of your funds in stock where it is safer as long as you'll choose good coins for the long run investment.

[sujonali1819]

Since margin/future trade is very risky as gamble so I always suggest to trade with 5-10℅ of your trading balance in every trade. And always be happy with low leverage. Market is not stable now. So the prediction is very hard this time. Anytime anything can happen. Always should enter in a trade with high confidence.

[BitMaxz]

Future trading(Leverage trading) is risky but if you know what you doing then you can easily make a good profit on high leverage trading.

I think the trade sizing you mean is the risk amount that you can lose for every trade you made. It is likely you want to stop-loss the trade when it touches to risk amount you set.

5% to 15% is usually traders risk amount of their investment if you want to make a profit then do scalping like what AicecreaME and do 1.5 ratios on a short position. I just recommend a 1.5 ratio due to trends but always check the resistance level and analyze the market before you set a short position.

[DarkDays]

5% to 15% is usually traders risk amount of their investment if you want to make a profit then do scalping like what AicecreaME and do 1.5 ratios on a short position.

My positions never go above 20% this is my top limit. I find that when trading with leverage you have to be so much more conservative as you can easily lose more than you prepared to which is why limit orders and stop-losses can mean so much to any trader. Scalping is yet another route but again you can't get too complacent about it, you need to once more decide on your risk:reward ratio, ideally a risk no higher than 15%.

[teosanru]

Looking for advice from veteran bitcoin futures traders - I assume futures traders attempt to capture short to medium trends in both directions, up and down. Further assume that one can't always be right and will have profit target/exits and stop losses. But how about trade sizing?

Assume you have $100,000. How would you size each trade?

It's quite different based on the time frames you are trading Intraday/swing/positional. But I will give you a basic idea which could work on everything. Keep a set amount of risk you are willing to take on any given day/week/month. If you have $100,000. 2% is a pretty huge risk on daily basis. so let's say you decide that your maximum risk is 2% of your capital. Now wait for the right setup as per your trading strategy. Find a trade that has a stop loss size equivalent to 2% of your capital or less than that if you want to enter multiple trades. Check whether the Risk/Reward is atleast greater than 0.8/1. If it is decide your position size accordingly.

For eg: I have $100,000. I see a bitcoin trade setup of buying at $40000 and my stop loss can be placed at around $39000. Now 2% of my capital is $2000. This means I can enter a position worth 2BTC. Deciding the margin and leverage is entirely up to you. There is no rule here. But you cannot enter any other trade as you have exhausted 2% risk aversion of your capital.

One option can be to just take 0.5% risk on this one trade and keep the remaining 1.5% for the other trades. But this is how all the trades should be done in a mathematical manner.

You can easily create an excel file based on this or here is an online tool that you can use too. https://tradingcryptocourse.com/course/position-size-calculator/

Pro Tip: Keep stop loss at 1.9% instead of 2% of the capital and use STOP MARKET order because to ensure this stop is executed you might need to ensure a stop market order.

[apityeh71]

Use percentace for stop loss 1% and  for take profit 1.5%-2% for each trade. This ratio is to keep the balance of trading strong, although we are keep get loss for 7 times trade, we only get total loss 7%. This ratio is good for psycology of trading and to have more probability to make profit by consistent. Futures or margin trading is very risky and avoid too greedy.

[Fivestar4everMVP]

Best advice is if you are new to crypto and don't know how to effectively trade the market yet, don't rush to put such an amount of money in bitcoin futures trading as that ground is not where children play, I would advice you invest some of that money on very good and high potential coins or altcoins while you take out just a very little  amount to play around with, at least, until you are sure and confident in yourself that you won't go making foolish mistakes that will cost you a fortune.
Try as much as possible to learn how to technically analyze the market as well as learn how to read candles as this will help you to effectively predict the movement of the market though not 100 percent but to some good degree.

[stomachgrowls]

5% to 15% is usually traders risk amount of their investment if you want to make a profit then do scalping like what AicecreaME and do 1.5 ratios on a short position.

My positions never go above 20% this is my top limit. I find that when trading with leverage you have to be so much more conservative as you can easily lose more than you prepared to which is why limit orders and stop-losses can mean so much to any trader. Scalping is yet another route but again you can't get too complacent about it, you need to once more decide on your risk:reward ratio, ideally a risk no higher than 15%.

You should really be conservative rather than on having that gambler like mind when you do deal up with futures trading. Myself does have also that limit of 20% in maximum and i do never go past
beyond that limit because going above those lines would already be considered to be a gambling decision rather than on trading one.

When it comes to advices then OP would be only the ones who could formulate his own because true experience is the real deal. You cant formulate if you dont test out for yourself.
You would be the one will finding out on how much you can risk and how you do make decisions.

You might able to get some good points on here but applying it to ones self wouldnt really be that easy.

[andriarto]

Looking for advice from veteran bitcoin futures traders - I assume futures traders attempt to capture short to medium trends in both directions, up and down. Further assume that one can't always be right and will have profit target/exits and stop losses. But how about trade sizing?

Assume you have $100,000. How would you size each trade?

That capital only suit those who have enough experience in trading and if you’re a newbie its hard to deal with futures because that is too risky. Anyway, let’s just assume that you’re good in trading and want to take more risk on futures, you have to size your trade based on your strategies and never go all in, you should always have a back up plan.

even small capital will easily become large, as long as we are good at trading. but to be good at trading it takes strategy and experience in trading. therefore we have to enrich the experience with a lot of practice, so that later we will become professional traders too.

[newdevices]

Looking for advice from veteran bitcoin futures traders - I assume futures traders attempt to capture short to medium trends in both directions, up and down. Further assume that one can't always be right and will have profit target/exits and stop losses. But how about trade sizing?

Assume you have $100,000. How would you size each trade?

everything can be explained through chart analysis, if you can read charts then you don't need to worry about trading in futures,
and if you have $ 100k of course that's a lot of money and you can lose your money easily if you can't read charts,
my advice is put stop lose -5% and use capital less than 10% when open positions, the last do not be greedy

[Ararbermas]

everything can be explained through chart analysis, if you can read charts then you don't need to worry about trading in futures,
and if you have $ 100k of course that's a lot of money and you can lose your money easily if you can't read charts,
my advice is put stop lose -5% and use capital less than 10% when open positions, the last do not be greedy

you have point there mate..to be exact knowledge is the most important when it comes to this way of making profits. And the first thing you need to know is how to read the chart in order for you to have a clue where will be the next direction of the growth rate.. Actually someone says that no one can really predict the real movement of the chart but i don't believe on that kind of view because it all depends on you if you really interested to such things.. In fact in trading we have some useful indicators wherein that can really show us some specific information, if you are not confident about the results after using one tools then combine those indicators just to obtain the best results that can prove you the real potential of the candles.. Efforts is required but yes it will be worth it after all.

[mamahdedeh]

everything can be explained through chart analysis, if you can read charts then you don't need to worry about trading in futures,
and if you have $ 100k of course that's a lot of money and you can lose your money easily if you can't read charts,
my advice is put stop lose -5% and use capital less than 10% when open positions, the last do not be greedy

you have point there mate..to be exact knowledge is the most important when it comes to this way of making profits. And the first thing you need to know is how to read the chart in order for you to have a clue where will be the next direction of the growth rate.. Actually someone says that no one can really predict the real movement of the chart but i don't believe on that kind of view because it all depends on you if you really interested to such things.. In fact in trading we have some useful indicators wherein that can really show us some specific information, if you are not confident about the results after using one tools then combine those indicators just to obtain the best results that can prove you the real potential of the candles.. Efforts is required but yes it will be worth it after all.

after we analyze the market, of course it is not enough to do that, we must have a target so that we don't get greedy. On the other hand, in predicting the market, of course we experience mistakes, and the most important thing we have to do is place a stop loss or cut loss so that our capital can be protected.

[crzy]

Looking for advice from veteran bitcoin futures traders - I assume futures traders attempt to capture short to medium trends in both directions, up and down. Further assume that one can't always be right and will have profit target/exits and stop losses. But how about trade sizing?

Assume you have $100,000. How would you size each trade?

That capital only suit those who have enough experience in trading and if you’re a newbie its hard to deal with futures because that is too risky. Anyway, let’s just assume that you’re good in trading and want to take more risk on futures, you have to size your trade based on your strategies and never go all in, you should always have a back up plan.

even small capital will easily become large, as long as we are good at trading. but to be good at trading it takes strategy and experience in trading. therefore we have to enrich the experience with a lot of practice, so that later we will become professional traders too.

That's how futures trading works even if you have a small capital, exchanges let you borrow some funds and when you got liquidated, expect to lose big time. Futures are for the advance trader who knows the risk of doing it, if you are still newbie I also believe futures is not for you yet so don't rush jumping into a big risk way of trading, better to start small and go big when you already have enough knowledge.

[taufik123]

after we analyze the market, of course it is not enough to do that, we must have a target so that we don't get greedy. On the other hand, in predicting the market, of course we experience mistakes, and the most important thing we have to do is place a stop loss or cut loss so that our capital can be protected.

The target must be really set and must not be broken so as not to be greedy and end up with losses. Placing a stop loss or cut loss of a few percent to reduce losses will be very beneficial, so we don't have to exit the market manually. Sometimes if we don't place a stop loss we will keep holding it until it is liquidated.
Bitcoin futures trading carries a greater risk than spot trading. Must be really disciplined in the strategy made and capital and risk management is very important.

[devollito]

Looking for advice from veteran bitcoin futures traders - I assume futures traders attempt to capture short to medium trends in both directions, up and down. Further assume that one can't always be right and will have profit target/exits and stop losses. But how about trade sizing?

Assume you have $100,000. How would you size each trade?

If you want to do future trade i suggest you to not use big margin in crypto market. Because you will get liquidated fast. At least use 2x margin only thed the size is 20% of all your money. Dont forget to set your stop lost too. Stop lose i use usualy 30% of the price i enter the matket.

[Fesatmas]

if with $100,000, then simply I will use an uncomplicated strategy, namely first use 50% to buy (of course when correction). When the demand is fulfilled, the remaining 50% is reused to fortify the price below the purchase. and the first order already entered is kept on put option to fortify the sell price.

then you will see a structured buy and sell option

[GreatArkansas]

There are a lot of traders who are advising always to use max 10% size only of your total balance for every trade position.

But there are also some traders who are diving that 10% for a trade position, like for first entry, you will only put 3%-5%, and like if the price will move down or up, you will add your trade position until the 10% satisfied.

And some also told that if your entry is extremely obvious that it's gonna win, they are telling you to put higher trading size position, which I believe to this is very bad and risky of course.

[sedahan13]

In my opinion, before we put money and trade on futures market, my suggestion firstly we should learn about leverage trading on demo account. From that we know and understand how the risk and the potential profit. I dont find platform that provide demo account for futures trading, but we can try on Metatrader 4 that currently many broker provide pair of crypto. The level risk of futures or margin trading according to how high the leverage, so for beginner trader always use low leverage first. 100k is too high balance for leverage trading, never put money in 1 basket, that is very important to minimize the risk.