Examples of Risk Management - Know Your Risks (Part 2)

All sharing is only for transaction records and opinion sharing, please do not follow orders.

Continuing with the above, the actual opening points of DX are as follows:

- risking 0.5% on entry 1: 39xxx

- risking 0.25% on entry 2: 38xxx

- risking 0.25% on entry 3 : 37xxx

- Stop Loss (SL) Stop Loss: Uniform 37xxx (Due to community guidelines, it has been hidden, you can see the picture)

- Take Profit (TP): Depending on the situation, 48,000 is expected when opening an order

A little understanding of these terms, it is not difficult to understand that when these three setup transactions are entered, I will enter a multi-single transaction of BTC/USDT perpetual contract with a risk of 1% of the total position. The profit and loss ratio of the transaction is approximately 8:1.

In the actual market trend (January 23), you can find that I entered the market for 2 transactions and quickly rebounded a certain distance. Following the trend, I raised the SL (stop loss) to (BE: Break Even) on January 24 to break even (that is, the average opening price, when the SL of a transaction is set to BE, it means that the transaction is Risk Free) , at this time, the average opening price is 38841. Next I just have to keep watching without taking any risks on this trade.

As the price continued to rise, I closed 50% of the position at a price of 41884.9 on January 27, making a profit of 2R. On January 30, 25% of the position was closed again at the price of 43445, with a profit of 3R, and the remaining position was 25%.

Today, I set a new entry Set up with a risk of 0.5R and plan to increase my position risk-free.

The latest entry settings are:

- risking 0.5% on entry 1：413xx

-SL: 380xx

- TP: 48xxx

This order has not entered the market yet. If the market gives me the opportunity to step back and enter the market, I will re-increase the position by 0.5R and it will still be risk free. Because the 0.5R loss after the stop loss of this position has been included in the profit of my order.

This is the risk management that DX trading follows, a practical example I think easily illustrates it all, if you have any questions, please feel free to comment and ask. Similarly, I hope you can follow my channel if you want to know more about my position opening logic and actual trading.

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