#### ** Long on DOT (Leverage: 5x)** 🚀
- **DOT Current Price:** $8.66
- **Leverage:** 5x
- **Capital Invested:** $100
- **Effective Exposure:** $100 × 5 = **$500**
- **Stop Loss (SL):** $8.40
- **Take Profit (TP):** $9.10
**If DOT Increases by 5%** (TP hit):
- **New Price:** $9.10
- **Profit Calculation:**
- Profit = ($9.10 - $8.66) × Exposure / Price = $0.44 × ($500 ÷ $8.66)
- Profit ≈ **$25.40** 💰
- **TP Hit** 🎯
**If DOT Drops by 3%** (SL hit):
- **New Price:** $8.40
- **Loss Calculation:**
- Loss = ($8.66 - $8.40) × Exposure / Price = $0.26 × ($500 ÷ $8.66)
- Loss ≈ **$15.01** ❌
- **SL Hit** 🛑
#### ** Short on BTC (Leverage: 10x)** 🐻
- **BTC Current Price:** $97,768.64
- **Leverage:** 10x
- **Capital Invested:** $1,000
- **Effective Exposure:** $1,000 × 10 = **$10,000**
- **Stop Loss (SL):** $99,000
- **Take Profit (TP):** $96,800
**If BTC Drops by 1%** (TP hit):
- **New Price:** $96,800
- **Profit Calculation:**
- Profit = ($97,768.64 - $96,800.00) × Exposure / Price
- Profit ≈ $968.64 × ($10,000 ÷ $97,768.64)
- Profit ≈ **$99.04** 💵
- **TP Hit** 🎯
**If BTC Increases by 1.25%** (SL hit):
- **New Price:** $99,000
- **Loss Calculation:**
- Loss = ($99,000.00 - $97,768.64) × Exposure / Price
- Loss ≈ $1,231.36 × ($10,000 ÷ $97,768.64)
- Loss ≈ **$125.85** 🛑
- **SL Hit** 🛑
### **Summary with Stop Loss & Take Profit**
- **DOT Long** 🚀:
- **Potential Profit (TP Hit):** +$25.40 💰
- **Potential Loss (SL Hit):** -$15.01 ❌
- **BTC Short** 🐻:
- **Potential Profit (TP Hit):** +$99.04 💵
- **Potential Loss (SL Hit):** -$125.85 🛑
### **Key Strategy with SL/TP** 📊
**Set Stop Loss (SL)** at **2-3% below the entry price** for **Long Positions** (Example: DOT at $8.40).
2. **Set Take Profit (TP)** at **5-10% above the entry price** for **Long Positions** (Example: DOT at $9.10).
3. For **Short Positions**, reverse the logic for SL and TP:
- **SL** above the entry price, **TP** below the entry price.
⚖️ **Risk/Reward**
