How big a position should I place for a contract?
For me, I will take out 3%-5% of the total position as margin
100x leverage for Bitcoin, 50x leverage for Ethereum, and 10x leverage for other altcoins
Why 3% to 5%?
Because I have calculated that if I am sure, I will take 5%, and the loss is generally within my tolerance range; if I am about 50%, I may take 3% of the position as margin, so that I will not feel bad even if I stop loss!
The summary of the first point is: how big a position depends on how much loss you can accept.
And how to set the stop-profit and stop-loss points?
For me:
For long positions
The stop-loss will be based on the support level below the trend combined with the trend of the market
The stop-profit will be based on the pressure level above the trend combined with the trend of the market
The same is true for short positions, but I am more likely to be long.
Here is an important point: a reasonable profit and loss ratio!
The third point: How to identify whether this order should be made?
This is also the key core point of contract making!
Here I will talk about the three elements of my contract order:
1. First use a macro perspective to analyze the general trend. If the general trend is bearish, try to do less and follow the trend.
If there is a need for a callback, don't worry first, see how the market trend is, and analyze whether the order conditions are met from the clues
2. The technical aspects must be met (from the monthly line to the 4H level, it must meet my order conditions. Even if you do ultra-short at the hourly level, you must first look at the trend at the daily level, but try not to do ultra-short)
3. If 1 and 2 points are met, you must see whether the profit and loss ratio of stop profit and stop loss is reasonable. For me, it is generally a profit and loss ratio of 2:1 before I will place an order, and the higher the better. In the worst case, it must be 1.5:1, and other cases can be PASSed.
Facing the next violent bull market, I plan to ambush some tokens that are ready to explode, and also find some potential coins to hold until the end of the year. Friends who like spot 👉 click on the avatar to follow me, and I will update the best information and spot contract strategy sharing in real time every day!
