How to implement a risk-beam relationship in the shop: Guide to protection and management
The number of cryptocurrency trading is fast -paced and constantly. With new coins and hole perforations, it is increasingly important for merchants to effectively manage the risk. One of the key strategy used by seasonal merchants is two risk-beam ratio ratios, which is a “stop loss” or “risk management” approach. In this article, we explore how the risk-beam relationship implements in trading and provides tips for protecting and managing risks.
What is the risk ratio ratio?
The risk-rewarding value, Alsso, known as the Stop loss, is a mathematical formula that a merchant can afford to take upon request. It is called by dividing the force to the maximum end that may disappear.
Forest, if you trade a Bitcoin pair with a risk ratio 2: 1, this one you have for every $ 100 potential profit, you can only risk $ 20 ($ 100 /2).
How to implement risk-beam ratio
If you would like to implement a risk-reward relationship with a trading strategy, follow these steps:
- Set your trading target : Before implementing the risk relationship, determine what you want to achieve in every store. Looking for short -term gin or long -term profiles? Are you trying to maximize your account or minimize SILs?
- Choose your risk level : Decide the maximum value that can dare to trade. This is typically calculated singing, such as:
Risk = Reward / (1 + STOP defeat percentage)
Wheat is the maximum amoon that can lose and the best people are the best.
- Set your trading plan
: Create a trading that outlines your risk-reward ratio, qualifications and stop-los levels.
- Monistry Trades : Continuous monitoring of your stores to make sure you have followed your planned strategy.
Types and Risk Relationships
There are many types of risk-prize radios used by merchants in the cryptocurrency trade:
* 2: 1 Relationship : This is a mandatory Commmon risk fee with only $ 20 for each potential profile for each $ 100.
* 3: 1 or 4: 1 Relationship : The high -risk fees of these major stores or no one attempts to maximize your output.
* STOP loss rate (SL%) : This is a durability reward used for fishing for a stop loss. General SL% currency includes:
* 20-50%
* 30-60%
* 40-70%
Tips for Risk Management
In addition to implementation, the risk-reward value is a uniform link in risk control:
Station size dimensioning : Avoid tuning excess risks from the position by placing positioning so that it is based on overload and trading goals.
* STOP Lottery Levels : Set STOP loss levels that are more limiting any losses.
* Risk Management Tools
: Consider the risk of managing risks of management tools such as STOP-defeat indicators, opponents or strategies.
conclusion
The implementation of a risk-beam relationship is an essential step in risk management and maximizing the return on cryptocurrency trade. By following these steps and tips, you can have a solid source on your strategy and set up your relative. Remember to stay in discipline, your multi -purpose trade carefully and adjust you as needed to make sure you need to have a risk.
Disclaimer
This article is information about the purposes that are only for the East and Shueld. There is a significant risk in Cryptocurrence, including loss of capital and may not be suitable for all investors.
