#仓位管理#

Today in the live broadcast room, a novice brother asked about position management issues, so I will clarify this.
First of all, if you are feeling anxious about holding positions or opening orders, you must do a good job of position management. Good position management can not only control the risk of your principal being liquidated but also give you a good mindset for holding positions. Specifically, for example, if your principal is 4000u, you can divide it into 4 parts, each part being 1000. Each time, you use a total position of 1000 to open. If you make a profit, withdraw it to the total pool; if you incur a loss, replenish it from the total pool, ensuring that each time is opened with 1000. When the total pool reaches 8000 due to profits, then use 1/4 of that, which is 2000 each time, and continue to double it accordingly. This way, even if extreme market conditions arise or you face losses, your principal will not be completely wiped out.
Regarding stop loss, single trade risk control, after determining the point, calculate the stop loss distance. For example, if you buy Ethereum at 3600 and set a stop loss at 3500, then the stop loss width is 2.7%. If you set a fixed stop loss of 5% of the total position each time, with a leverage of 10 times, according to the following formula:

Total position x single stop loss ratio = Total position x actual opening ratio x stop loss width x leverage size

So the opening position ratio in the above calculation example is = single stop loss ratio / ( stop loss width x leverage size )

Substitution means the actual ratio = 5% / 2.7% / 10 = 18.5%

That is 18.5% of the total position for a single transaction, which is 185 dollars.

This way, after setting it up each time, my mindset towards holding positions will be much better, and there will also be no risk of liquidation.