Proper risk management?

[Ararbermas]

Well this is it guys because today i would like to share this tool that can help us to have a proper risk management when it comes trading..

Its a free tool actually and it's called winrate.io

This tool can estimate our earnings and losses from trading by simulating trades based on winrate, fees, leverage etc.
This is a big help especially if your trading with leverage

Infact you can run your own strategy as well to see it if it's good or not.

See the image below..
60 wins 40 losess you still have an amazing winrate as long as you have a proper risk management..

[Oshosondy]

Thay can be helpful in trading, but emotion is very important aspect to face while trading. Risk management in this case can be helpful for people that are trading several coins at a time, this is common in forex trading. Since I have been trading cryptocurrencies, I noticed their price move in the same direction, I prefer to choose just one coin and which is bitcoin.

What I am trying to say is that risk management is beyond using app or any software that will calculate the percentage wining and losses, it is also about mindsets and emotions about opening and closing a trade at the appropriate time.

[tbct_mt2]

Well this is it guys because today i would like to share this tool that can help us to have a proper risk management when it comes trading..

Its a free tool actually and it's called winrate.io

This tool can estimate our earnings and losses from trading by simulating trades based on winrate, fees, leverage etc.
This is a big help especially if your trading with leverage

Infact you can run your own strategy as well to see it if it's good or not.

You can do back-test on Trading View as well if you can code script and have proper skills in trading. You can not code a good script which helps you to eliminate your emotion and get profit if you don't know which indicators to add into your bot, script.

Script, bot only is helpful because it works 24/7 and does not have emotion like human. No fear, no greed, it works based on indicators you set it up. You can not apply trading method in a successful bot and get same win rate. Because when you do it manually, you will be affected by emotion, fear, greed which in turn reduces your win rate generally.

[Slow death]

this is a very good result and I hope it stays that way, but on my journey I have been trading with longer periods of time, trading for 5 or 15 minutes does not help at all, on the contrary, it brings losses, in this cryptocurrency market just to make a profit and I need people to be patient and a little greedy. for example if the person is day trading bitcoin on a 5 or 15 minute chart and another person is trading a 4h chart or more or even daily, the person who is trading 4H on the same daily will have more profit as well At least that's what I've observed

[passwordnow]

It's a good tool but actual trading results really are varying from your situation on that particular time of trades. Your emotion can change which will be a matter of change for your decisions which also leads to a different result. These tools are helpful if you're consistent but even if you are, there's always an unexpected time that you're going to be inconsistent due to several factors that you haven't seen and noticed to come.

[24Kt]

It's a good tool but actual trading results really are varying from your situation on that particular time of trades. Your emotion can change which will be a matter of change for your decisions which also leads to a different result. These tools are helpful if you're consistent but even if you are, there's always an unexpected time that you're going to be inconsistent due to several factors that you haven't seen and noticed to come.

There's a disclaimer on the winrate's site about the possibility of getting different results when you trade live. So yes, the actual set-up may change as you also have other considerations that you need to include. Also, it will depend on the trading pair that you are going to use. And the variation can deviate during the actual trading. But maybe, for reference purposes this would do.

[Mr.right85]

From what is displayed on OP, it seems nice and works but, that's only because OP is already good at trading. Of course it would go quite well with the simulation trading as it could help build a strategy but, how is this really calculated I wonder? How are the values attained because, the know how is also important and it gives users some level of confidence about the figures that comes popping up on the display screen.

[passwordnow]

It's a good tool but actual trading results really are varying from your situation on that particular time of trades. Your emotion can change which will be a matter of change for your decisions which also leads to a different result. These tools are helpful if you're consistent but even if you are, there's always an unexpected time that you're going to be inconsistent due to several factors that you haven't seen and noticed to come.

There's a disclaimer on the winrate's site about the possibility of getting different results when you trade live. So yes, the actual set-up may change as you also have other considerations that you need to include. Also, it will depend on the trading pair that you are going to use. And the variation can deviate during the actual trading. But maybe, for reference purposes this would do.

There are traders and most likely the newbies, they won't read those disclaimers that are written on the tools like winrate. The belief that has made on their lives is that if there are tools like this.
It's a guaranteed win to them but they don't realize that until the actual trading setup is being done and they're experiencing both wins and losses.

[leea-1334]

this is a very good result and I hope it stays that way, but on my journey I have been trading with longer periods of time, trading for 5 or 15 minutes does not help at all, on the contrary, it brings losses, in this cryptocurrency market just to make a profit and I need people to be patient and a little greedy. for example if the person is day trading bitcoin on a 5 or 15 minute chart and another person is trading a 4h chart or more or even daily, the person who is trading 4H on the same daily will have more profit as well At least that's what I've observed

But should not trading be about not watching the screens all of the time and just spending time on charting and analysis,,, then going into the platform to make your orders and then leaving it to execute (or if using strategy with bot then just entering parameters into the bot).

I think the main issue with risk is that if you allow yourself to manage it, you cannot predict the levels of risk.

But allow a strategy to manage it,,, and you predict exactly your limits.

[palle11]

this is a very good result and I hope it stays that way, but on my journey I have been trading with longer periods of time, trading for 5 or 15 minutes does not help at all, on the contrary, it brings losses, in this cryptocurrency market just to make a profit and I need people to be patient and a little greedy. for example if the person is day trading bitcoin on a 5 or 15 minute chart and another person is trading a 4h chart or more or even daily, the person who is trading 4H on the same daily will have more profit as well At least that's what I've observed

Reacting to this based on your analysis on the time frame, I'm interested on the profit taking that you tied to time frame that the longer time frame, the higher the profit. I don't think this is right because time frame doesn't matter how much you can profit or lose. No, what I think that can relate to how much profit or lose can be made is risk management,risk appetite and your lot size. It is particularly the lot size that you trade with that will determine the amount of profit or loss but not time frame used.

[uchegod-21]

It's a good tool but actual trading results really are varying from your situation on that particular time of trades. Your emotion can change which will be a matter of change for your decisions which also leads to a different result. These tools are helpful if you're consistent but even if you are, there's always an unexpected time that you're going to be inconsistent due to several factors that you haven't seen and noticed to come.

You nailed it. Proper risk management is more of emotions control than using tools to simulate. Unless you are entering so many trades and you begin to use tools and you need to be consistent with one strategy to get results.
Risk management is what people often overlook in trading. Before I begin to use tools, I have already learnt how to manage my risk myself and control my emotions. To succeed in trading one needs to be patient, manage risk and be informed.

[passwordnow]

It's a good tool but actual trading results really are varying from your situation on that particular time of trades. Your emotion can change which will be a matter of change for your decisions which also leads to a different result. These tools are helpful if you're consistent but even if you are, there's always an unexpected time that you're going to be inconsistent due to several factors that you haven't seen and noticed to come.

You nailed it. Proper risk management is more of emotions control than using tools to simulate. Unless you are entering so many trades and you begin to use tools and you need to be consistent with one strategy to get results.
Risk management is what people often overlook in trading. Before I begin to use tools, I have already learnt how to manage my risk myself and control my emotions. To succeed in trading one needs to be patient, manage risk and be informed.

Patience plays a vital part in trading. As you assess and manage the risk, you're going to look for some things that will help you to get over your trade.
If it's helpful, why not? But if it's not then there's reason to use it. As for these tools, it will still rely on how you use it and good you are with decision making. Even with a tool but you're no good with those factors, your trades won't be productive, effective and profitable.

[carlfebz2]

Thay can be helpful in trading, but emotion is very important aspect to face while trading. Risk management in this case can be helpful for people that are trading several coins at a time, this is common in forex trading. Since I have been trading cryptocurrencies, I noticed their price move in the same direction, I prefer to choose just one coin and which is bitcoin.

What I am trying to say is that risk management is beyond using app or any software that will calculate the percentage wining and losses, it is also about mindsets and emotions about opening and closing a trade at the appropriate time.

Agree on this one because this is one of the factors that could really affect your overall strategy and also having these simulations wouldnt really be precise that it could be followed because the market do moves

randomly even how many times you would simulate such strategy but it wouldnt really be giving out any assurance that it would really be on the same outcome or result.
Risk management would be consist of finance and emotion or psychological aspects which you should need to look on.

[Doell]

I'm trying to understand the management strategy in that simulation platform software, it might work if the market is not bearish moment. But it also depends on other aspects related to impatient emotions is an important point in every trade, its difficult to control even if we already have any strategy.

[jrrsparkles]

Not really a very useful tool because we need to enter all the details manually which is possible for someone who trades few times a day but it is really possible to keep doing it after every trade? Which is kind of an Excel sheet in different interface nothing else better we can do this on our own and don't let a third party to know about our trade winning percentage details for free.

[maydna]

Perhaps, that can work best if the market situations have a good moving, but we know that the market can not be predicted easily, so that tool can not work all the time. We need to adjust our trading strategy time by time, and knowing the risk is important to know when to close the trading. But if you only want to check the rate of profit or loss, you can use that tool but do not use it seriously because you still need to analyze the market every time you trade. The result will be different from that tool.

[el kaka22]

DCA is always the best risk management that I have. I personally always put in some crypto every single month. Even when it is low or high, doesn't matter where it is and I end up making as much profit as I could from it and live with that.

There is really nothing wrong with buying bitcoin at 68k and there is nothing wrong with 38k neither, just buy wherever you can at all times and focus on growing your bitcoin holding. Why? Because, I believe that in the long run it will always go higher and higher which means that we are going to see the price reach to levels of 100k+ one day, even 200k+ one day and buying at these levels is a great idea. Sure, there are periods when it is lower and if you spent all of that money to buy at the bottom that would be great, but it would be even better if I bought it from 1 dollar each, I didn't so I do not dwell on that and keep doing what I know best.

[stompix]

See the image below..
60 wins 40 losess you still have an amazing winrate as long as you have a proper risk management..

Of course it will have an amazing winrate, you just used a 60 percent win.
That means if you're going to bet 10 times you're going to win 6 times and lose only 4 times, everyone will make money IF they could have this rate.
There is nothing magical in it or one huge discovery, that's how probabilities work.Now put 52% at that winning rate and you're going to see you lose money, on 50% starting with 100k you're losing around 10k in just 10 trades just because of the fees.

The problem in this simulation, how are you going to achieve a 60% win rate in trades in real life?

[BlackHatCoiner]

And how can you ensure that's your win rate? Sure, if you have 60% chances to win, you'll most likely win 60 out of 100 times. But, how can you measure it given that you don't know anything beyond a chart?

Also, if you could find a way to ensure profit, why would there be labor? Everyone would choose to trade. It's pretty obvious that there's a lot of uncertainty about the win rate. That's why some call it “gambling”.

[GreatArkansas]

Glad to see threads/posts about risk management.
For OP, how you will apply this to your trading? Just like when you start trading and start opening some trade positions?

I also believe that using risk: reward ratio is good here before entering any trades position, with that, you will identify your target price, stop loss, and there you can see your risk: reward ratio.