Why to Risk only 1-5% per trade ?
The below are just examples and guidance u can always play around with the percentages
The main reason is.... No one wins every trade or reach all TP, but we try to have high hit ratio and the 1% risk rule helps protect a trader's capital from declining significantly in unfavourable situations.
If you risk 1 percent of your current account balance on each trade, you would need to lose 100 trades in a row to wipe out your account. If novice traders followed the 1-percent rule, many more of them would make it successfully through their first trading year.
Example :
Suppose your capital is $10,000 and with 1% rule here your risk will be $100.
We are going to use simple formula to decide final amount.
Amount to borrow = Risk / Stoploss %
$2000 = $100 / 5%
You can borrow $2000 for this trade or take 20x leverage (20 = 2000 / 100).
How to apply this non Leverage trade ? It is simple ...
Amount to Invest = Risk / Stoploss %
$2000 = $100 / 5%
You will invest $2000 and 5% Stoploss.
So on any given trade you would loose only 1% of capital or you will make 1%-3% of capital in single trade.
And investing only 1% per trades makes you sleep better without any worry knowing that you are going to loose only 1% of whole capital or make 2%-5%.
Even with hypothetically $100 you can risk 5% and make good money end of the month.
$100 = risk $5 / SL 5%
you will end up making $10 - $25 per trade or you will loose $5.
To become profitable you need to target ABOVE following winning %
33% winning rate to hit breakeven by 1% Stoploss & 2% Target.
25% winning rate to hit breakeven by 1% Stoploss & 3% target.
You need winning rate above 33% or 25% to become profitable.
If you manage to make 30% gains per month within a year your account would compound from $10,000 to $232,981/-
The below are just examples and guidance u can always play around with the percentages
The main reason is.... No one wins every trade or reach all TP, but we try to have high hit ratio and the 1% risk rule helps protect a trader's capital from declining significantly in unfavourable situations.
If you risk 1 percent of your current account balance on each trade, you would need to lose 100 trades in a row to wipe out your account. If novice traders followed the 1-percent rule, many more of them would make it successfully through their first trading year.
Example :
Suppose your capital is $10,000 and with 1% rule here your risk will be $100.
We are going to use simple formula to decide final amount.
Amount to borrow = Risk / Stoploss %
$2000 = $100 / 5%
You can borrow $2000 for this trade or take 20x leverage (20 = 2000 / 100).
How to apply this non Leverage trade ? It is simple ...
Amount to Invest = Risk / Stoploss %
$2000 = $100 / 5%
You will invest $2000 and 5% Stoploss.
So on any given trade you would loose only 1% of capital or you will make 1%-3% of capital in single trade.
And investing only 1% per trades makes you sleep better without any worry knowing that you are going to loose only 1% of whole capital or make 2%-5%.
Even with hypothetically $100 you can risk 5% and make good money end of the month.
$100 = risk $5 / SL 5%
you will end up making $10 - $25 per trade or you will loose $5.
To become profitable you need to target ABOVE following winning %
33% winning rate to hit breakeven by 1% Stoploss & 2% Target.
25% winning rate to hit breakeven by 1% Stoploss & 3% target.
You need winning rate above 33% or 25% to become profitable.
If you manage to make 30% gains per month within a year your account would compound from $10,000 to $232,981/-
CS Future Signals pinned «Why to Risk only 1-5% per trade ? The below are just examples and guidance u can always play around with the percentages The main reason is.... No one wins every trade or reach all TP, but we try to have high hit ratio and the 1% risk rule helps protect…»
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Any questions? Do not hesitate to contact one of our helpful admins at any time! Thank You 🙏
CryptoSimplicity's service is 🤩 and I'd ❤️ helping others to benefit from their knowledge too by sharing a small amount of my profits!
USDT (TRX20 network):
TRaPXUs1VGR6KMDh568SB7PqMS4JAmpMsU
BNB (BSC network):
0xe0e088d642885F6A94f382884c8539f7F4DB5681
Any questions? Do not hesitate to contact one of our helpful admins at any time! Thank You 🙏
CS Future Signals pinned «🥳 YES 🎉 CryptoSimplicity's service is 🤩 and I'd ❤️ helping others to benefit from their knowledge too by sharing a small amount of my profits! USDT (TRX20 network): TRaPXUs1VGR6KMDh568SB7PqMS4JAmpMsU BNB (BSC network): 0xe0e088d642885F6A94f382884c8539f7F4DB5681…»
Our trading signals channels have full access to Cornix trading bot so you can follow our signals automatically or manually by clicking the respective button.
Our suggested Cornix configuration is as follows:
Trailing entry - 0.5%
Trailing take profit - 0.5%
Trailing stop loss - Moving-2-target trigger at target 2
Amount per trade - 1% to 5% (we suggest this percentages to minimize risk)
Exchanges Cornix bot currently works with: Binance , Bitmex, Kucoin, Huobi.
For Cornix Bot configuration please follows these steps.
1. Go to @cornix_trading_bot
2. Add client and api key.
3. Connect to our channels and set the trading configuration provided above.
For step by step tutorial head to cornix.io website.
Any doubts, feel free to contact us in the CS Educational / TA channel.Pinned message understanding.
Our suggested Cornix configuration is as follows:
Trailing entry - 0.5%
Trailing take profit - 0.5%
Trailing stop loss - Moving-2-target trigger at target 2
Amount per trade - 1% to 5% (we suggest this percentages to minimize risk)
Exchanges Cornix bot currently works with: Binance , Bitmex, Kucoin, Huobi.
For Cornix Bot configuration please follows these steps.
1. Go to @cornix_trading_bot
2. Add client and api key.
3. Connect to our channels and set the trading configuration provided above.
For step by step tutorial head to cornix.io website.
Any doubts, feel free to contact us in the CS Educational / TA channel.Pinned message understanding.
CS Future Signals pinned «Our trading signals channels have full access to Cornix trading bot so you can follow our signals automatically or manually by clicking the respective button. Our suggested Cornix configuration is as follows: Trailing entry - 0.5% Trailing take profit - 0.5%…»
CS Future Signals
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In order to enable the auto trading capabilities, contact our tech support by clicking the button below
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PLEASE NOTE: Due to current situation, please always put SL to entry point once reached TP1.
CS Future Signals pinned «PLEASE NOTE: Due to current situation, please always put SL to entry point once reached TP1.»
🚨🚨 #DYDXUSDT 🚨🚨
Exchanges: Binance Futures
Signal Type: Regular (long)
Leverage: Isolated (5x)
Amount: 5.0%
Entry Targets:
Entry Zone: 25.360-25.385
Take-Profit Targets:
1) 25.815 - 25.0%
2) 26.340 - 25.0%
3) 27.000 - 10.0%
Stop Targets:
1) 23.440 - 100.0%
Trailing Configuration:
Entry: Percentage (1.0%)
Take-Profit: Percentage (2.0%)
Stop: Moving Target - Trigger: Target (1)
Exchanges: Binance Futures
Signal Type: Regular (long)
Leverage: Isolated (5x)
Amount: 5.0%
Entry Targets:
Entry Zone: 25.360-25.385
Take-Profit Targets:
1) 25.815 - 25.0%
2) 26.340 - 25.0%
3) 27.000 - 10.0%
Stop Targets:
1) 23.440 - 100.0%
Trailing Configuration:
Entry: Percentage (1.0%)
Take-Profit: Percentage (2.0%)
Stop: Moving Target - Trigger: Target (1)
🚨🚨 #DYDXUSDT 🚨🚨
Exchanges: Binance Futures
Signal Type: Regular (long)
Leverage: Isolated (5x)
Amount: 5.0%
Entry Targets:
1) above 25.020
Take-Profit Targets:
1) 25.355 - 40.0%
2) 25.815 - 25.0%
3) 26.340 - 25.0%
4) 27.000 - 10.0%
Stop Targets:
1) 23.440 - 100.0%
Trailing Configuration:
Entry: Percentage (1.0%)
Take-Profit: Percentage (2.0%)
Stop: Moving Target - Trigger: Target (1)
Entry: Percentage (1.0%)
Take-Profit: Percentage (2.0%)
Stop: Moving Target - Trigger: Target (1)
Exchanges: Binance Futures
Signal Type: Regular (long)
Leverage: Isolated (5x)
Amount: 5.0%
Entry Targets:
1) above 25.020
Take-Profit Targets:
1) 25.355 - 40.0%
2) 25.815 - 25.0%
3) 26.340 - 25.0%
4) 27.000 - 10.0%
Stop Targets:
1) 23.440 - 100.0%
Trailing Configuration:
Entry: Percentage (1.0%)
Take-Profit: Percentage (2.0%)
Stop: Moving Target - Trigger: Target (1)
Entry: Percentage (1.0%)
Take-Profit: Percentage (2.0%)
Stop: Moving Target - Trigger: Target (1)