⚠️ Please read the following CAREFULLY before investing money in my strategy (especially the Risks section) ⚠️

Test properties:
🔹Symbol: Binance ETHUSDT spot
🔹Period: M15
🔹Dates: 2018.01.01 to 2024.04.01
🔹Initial deposit: 8000 USD
🔹Comission: 0.05% for both sides (USDT taker) which is the largest comission on Binance futures (in practice, comission will be between 0.05% and 0.02% because in some cases expert uses limit orders).

Live monitoring.

🟢 Summarized results by risk mode compared to buy and hold:

🟢 6 year graph, 0% reinvestment:

🟢 6 year graph, 100% reinvestment:

🟢 2018 graph, 0% reinvestment:

🟢 2019 graph, 0% reinvestment (dead year for crypto):

🟢 2020 graph, 0% reinvestment:

🟢 2021 graph, 0% reinvestment:

🟢 2022 graph, 0% reinvestment (huge crash in crypto):

🟢 2023 graph, 0% reinvestment:

#COPYTRADING #RiskManagement #InvestingSafety #ethereum #algotrading

⚠️ Please read the following CAREFULLY before investing money in my strategy (especially the Risks section) ⚠️

Have you ever wonder why is it so hard to accumulate impressive capital using trading bots? The key feature here is reinvestment. You need to constantly increase your deposit so you could receive greater income. And compound that income to your deposit again. Then the power of compound interest will increase your capital exponentially over time.

To do that you can choose between two types of trading bots:

1. Martingale/grid bots with unlimited losses or bots with losses much greater than profits.
2. Bots with fixed losses which are less or comparable to profits.

🔹In the first case you have to withdraw all your profit because sooner or later the bot will burn your entire deposit. Assuming typical performance of grid bots, it will take a year or more to simply return 100% of your investment. And there's a great chance of losing everything during that time.

Some grid bots are more aggressive and can show >1000% profit in a month. When you see a result like this, simply ask yourself: if this guy would increase his capital 10x every month, how much money would he have in a year? Starting from $100 he should have $100 trillions! But he hasn't. Why?

⛔️ The trap you fall into when choosing such strategies is called a survivorship bias. That kind of profitability cannot last for a long time. It was just a luck that one of the attempts succeeded. All others failed. But you don't see them. You see only the successful one. And that's why you can't realize that it will also fail after you put money into it. The profit you see in such strategies will not be yours. It was just a matter of chance.

🔹In the second case you can compound your profit but it's difficult to achieve the same stability of performance compared to grid systems because such bots always tend to get overfitted to the past prices.

I've been stuck with this dilemma for a long time until I've created my trading bot.

#COPYTRADING #RiskManagement #InvestingSafety #algotrading #MoneyMakingMethod

| Account Size | Lot Size | Profit with (1:3 R:R) 

| $500          | 0.05     | $30                   

| $1,000       | 0.1      | $60                  

| $2,000       | 0.2      | $120                  

| $5,000       | 0.5      | $300                  

| $10,000      | 1.0      | $600

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1/ Want to succeed in the financial markets? Effective risk management is key! Without it, traders can quickly find themselves in a position of significant loss.

2/ To start, set clear and realistic financial goals and risk tolerance levels. Understanding the different types of risk, including market, credit, and operational risk, is also crucial.

3/ Implement a trading plan with rules for entering and exiting trades, as well as guidelines for managing risk. This includes regular monitoring of positions and adjusting strategies as needed.

4/ One effective way to manage risk in trading is by using stop-loss orders. These orders automatically close out a trade if the price moves against the trader by a certain amount.

5/ Diversification is another key aspect of risk management in trading. By spreading investments across multiple assets or markets, traders can reduce their exposure to any one particular risk.

6/ Be prepared for unexpected events that could impact the markets, such as economic or political news. Having a plan in place for how to respond to such events can help minimize their impact on your portfolio.

7/ Successful risk management in trading requires discipline, patience, and a deep understanding of the markets. Stay committed to managing risk effectively and you're more likely to achieve your financial goals over the long term.

8/ Remember, risk management is not just about avoiding losses - it's also about maximizing profits by taking calculated risks. Don't be afraid to take risks, but always do so with a clear plan and a thorough understanding of the potential risks involved.

9/ So take control of your trading strategy today and start implementing effective risk management techniques. Your portfolio (and your wallet) will thank you!

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#cryptotrading #cryptocurrency #BTCUSDT #RiskManagement #bitcoin