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In this video, I cover the basics of risk management for cryptocurrency and forex trading.

– Setting Stop Losses

– Calculating Risk Per Trade and Position Size

– Risk:Reward, R & Win Rate

– Tom Dante’s Idea of Evolving R

– Dealing with Drawdown

– Margin Trading

00:00 – 04:21 – Disclaimer and General Remarks
04:21 – 11:39 – Stop Losses
11:40 – 18:08 – Risk Per Trade & Position Size
18:09 – 26:43 – R & Win Rate
26:44 – 38:40 – Tom Dante’s Evolving R
38:41 – 46:35 – Handling Drawdown
46:36 – 49:35 – Margin
49:36 – End – Conclusion

Link to slides: https://docs.google.com/presentation/d/1RVycvmHsa4tGYA_J78yoWRRTbjQykZ7E7hpouu32QAQ/edit?usp=sharing

EdgeWonk maths sheet: https://www.edgewonk.com/wp-content/uploads/Math.pdf

BabyPips drawdown table: https://imgur.com/a/VNBG0MU

Win rate drawdown table: https://imgur.com/a/zjZ86zF

Free TA lessons & articles: https://docs.google.com/document/d/15c3rN15rkXldY8Te3GDG4NG7noaaoikydOoZQlElwXw/edit?usp=sharing

Twitter: https://twitter.com/CryptoCred

Telegram: https://t.me/cryptocredTA

BTC: 3Lmshpf32UtkWD4RCHvKJvb31u8MwqH7wF

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48 COMMENTS

  1. I've seen this at least 5 times. An ABSOLUTE MUST WATCH for every trader! Thanks Cred! I just need to DO what u talk about consistently. I win and get comfortable, then slack, then lose, then come back to this video. ? AMAZING free stuff! Thanks!

  2. Can anyone help on explaining how I can apply calculating R value ( ex. 19:47 ) when trading on Binance? There is no stop-loss function on Binance, only stop-limit. How do I calculate R value when the data given by the loss mitigation line of the TradingView tool isn't going to apply to trading on Binance?

  3. I invented yesterday the concept of calculating position size from wanting to have a set risk percentage on each trade, just nice to have my idea validated and get the proper name for it, ie contact. Your videos are awesome thank you.

  4. What an incredible series!
    Question. You said this is a basic lesson on risk management. Would you happen to have any recommendation on intermediate level or advanced?

  5. thanks mate! when you reduce your risk from 3% to 2% to 1% after a series of flawed trades… is that 2%/1% of your ORIGINAL starting total assets/trading stack…. or your new, damaged total trading stack?

  6. Hey there.
    Maybe im missing this completely… But where in the calculation (50,000 x 0.03) / 0.05 = 30,000
    The 0.05 I just dont understand where you get it…
    Ive read and read your medium articles and tried with all my might, but I just dont see where it comes from. Can you please shed a little more light on this for me!?

  7. I loved the tip on reducing risk percentage when you're on a losing streak, in order to soften its effect. Trading is all about outsmarting odds-gone-wrong, isn't it.

  8. Forex is the largest economic market in the world where more than 4 trillion dollars are traded each day and based on its area is considered the largest money market in the world. The market is served by different types of brokers, among which ECN brokers are topper on the market. As a highly regulated ECN broker I recommend AAFX with which you need to have a high level of financing security, smart bridge technology and superior quality ECN execution facilities.

  9. This right here is both the best video and information I've found for effective trading in over a year of searching. I bet that following these guidelines massively reduces your risk exposure and increases your potential for profit, while putting you in the forefront of crypto traders right now. Thank you Cred for this nugget!!

  10. You are the only person who explains risk per trade and position size very well. Believe me I've watched and read about that but you are the only one who explains it clearly. Amazing! Thank you

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