Whether trading can be profitable in the long term depends on whether you have good risk management

The basis of risk management is to control risks, that is, to control stop losses.

Generally speaking, there are two ways to control stop loss:

⚪️Fixed stop loss

⚪️fixed ratio stop loss

To put it simply, stop loss at how much amount/percentage you lose.

However, if you simply use this stop loss method, it is easy to cause a false stop loss situation where the price has not reached the technical stop loss level but the loss has reached the original amount. That is, the price returns to the original position after the stop loss. The reason is that the position volume was not calculated when opening a position, which led to the failure of position management.

The solution is to calculate the loss and calculate the position at the time of opening an order through simple calculations to achieve position control.

🛠️Tools: https://docs.google.com/spreadsheets/d/1kNDMKkP7Khln9IjKRkr0d0H-9ESQR9JC1gNFLwthtAs/edit?usp=sharing…

(No need to apply for editing permissions, click File → Copy in the upper left corner to create a copy)

⚠️Instructions:

Cross position: The total balance of the account will be linked to the final position.

Stop loss price: the expected technical stop loss level of this order

Leverage multiple: Since the risk has been controlled, the leverage here can be set according to your own preferences. 1000x is no problem. Just enter 1 for spot.

⚪️Fixed ratio stop loss input (recommended)

Risk percentage: refers to the percentage of total capital you are willing to bear to lose if a loss occurs. It is recommended to be within 2%. If the amount of funds is small and the risk appetite is high, it can be appropriately increased to within 5%. Once it is too high, it will be difficult to recover the capital.

⚪️Quota stop loss input

You can ignore the risk percentage and enter the amount directly at the stop loss amount.

The warehouse volume will be automatically calculated, and you must strictly follow the warehouse volume when placing an order.