#quinn_tips I’m trying slightly different risk management perspective on #FutureTarding now. I don’t stick to 1-2% stop loss. And I entry at the market not with a limit order. I aim to risk really no more than 0.5%.
Want to know how this actually improved my entries?
After I identify high probability area for an entry I switch to very low timeframe - 1m or 5m - and watch it. When price action suggest, that I’m seeing THAT candle i just enter at market price with tight stop loss. If market does not go into desired direction it just stops immediately. If market goes into right direction I put stop loss order in profit immediately 1-2$ (for $ETH ) above/below entry point. Again if the candle is not THAT candle and direction changes, trade is immediately closed with very small profit which hardly covers fees.
Reducing risk to 0.5% gives me opportunity to try many times to hit proper entry before I reach 2% loss. But it also allows me not to wait for extra confirmation, since I have many attempts in the pocket.
This is how I shorted $ETH almost perfectly at 3673 today. I made four attempts: one with 0.5% loss, 3 or 4 at break even and then this one:
Actually my stop loss is still hanging at 3668. I just want this position to run longer, since it covers portion of my ETH spot holdings.
Let’s wait maybe i close it at 3550 maybe at 2800 maybe at 2000 😂😂😂😂
actually yesterday I made even better short at around 3720. But put stop loss to tight and was stopped overnight 😞. No problem, crypto is so volatile that it gives opportunity to enter for those who are late.
Important lesson: just be cruel to your losers and close them immediately and your capital will be protected.
Not sure how this is going to work with high leverage though. I don’t trade with high leverage. But it will surely help avoid huge losses or liquidations.