[Read me]
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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
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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
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Link to slides: https://docs.google.com/presentation/d/1RVycvmHsa4tGYA_J78yoWRRTbjQykZ7E7hpouu32QAQ/edit?usp=sharing
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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
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Free TA lessons & articles: https://docs.google.com/document/d/15c3rN15rkXldY8Te3GDG4NG7noaaoikydOoZQlElwXw/edit?usp=sharing
Twitter: https://twitter.com/CryptoCred
Telegram: https://t.me/cryptocredTA
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BTC: 3Lmshpf32UtkWD4RCHvKJvb31u8MwqH7wF
You are amazing. Thank you!
Evolving R – it was a big question for me, but after several times watching it, I get it. Thanks Cred, much appreciated!
Amazing video, thank you for your contribution!
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!
your free education beats every paid course in the market
Hello, your video is amazing. I would like to add Vietnamese subtitles for my friends. Could you turn on the add subtitles function?
Great video
amazing tysm
I still don't understand how you set up a short trade. But I'm learning a lot from you my friend.
BTW for the R thing, the percent is only for breakeven not profit i think
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?
Grade A top notch shit
Shoutout to the basement, thanks once again.
One of the best explanations Ive seen so far. Thank you very much, really helpful
Total Equity * Risk Per Trade% = Position Size * StopLoss%
Thx so much!
Great video…!
these videos are so wonderful, and you're ana amazing teacher, i feel blessed to come across this 🙂 Many thanks!!
Excellent guide! Thank you very much!
I suggest you for this online courses just google search as "Zoe Talent Solutions".
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.
Thank you very much Cred!???
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?
Best so far about Risk Management I've watched, explained in simple way, I paid for worst on udemy, thanks for doing this, good luck
Hey! You're doing a great job.
Binance doens't offer the stop-market order, right? I've been looking for it for a while but can't find it.
Or am I missing something?
If I had a dollar for everytime I have watched this I'd probably have $5
Great, Great Video… so much help and so well explain. Thank you.
A good lucid lesson for revision
can anyone recommend a free alternative to EdgeWonk or a decent trade tracking spreadsheet? (Creddy's videos are the best!)
thanks mate! when you reduce your risk from 3% to 2% to 1% after a series of flawed trades… is that 2%/1% of your ORIGINAL starting total assets/trading stack…. or your new, damaged total trading stack?
Good resources, keep it up @CryptoCred, We just shared this resources on the only and best CryptoTraderLibrary. Check it out on telegram.me/CryptoTraderLibrary
Hey there.
Maybe im missing this completely… But where in the calculation (50,000 x 0.03) / 0.05 = 30,000
The 0.05 I just dont understand where you get it…
Ive read and read your medium articles and tried with all my might, but I just dont see where it comes from. Can you please shed a little more light on this for me!?
I lost 80% of my account, fucking impatient beginner
this video has so much value, thanks again for the great content, Creddy!
I loved the tip on reducing risk percentage when you're on a losing streak, in order to soften its effect. Trading is all about outsmarting odds-gone-wrong, isn't it.
This is amazing man! Thank you very much!
What crypto exchanges have stop-market orders besides Bitmex? Im in the US and cant use them. Binance only has stop-limit.
Time to learn and rise my 300$ back to 2000$ 🙂
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.
very very very intresting topic thank you very much creed ; hope that you have the time to expand on it in the near futur
hope the best man
Great video!
Why reducing the risk% after a series of losses? Murphy states that this is a mistake, as it is to increase it after a series of wins.
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!!
Excellent content here. Liked and subscribed
Wow man, thank you so much!
Thank you for all what do, that was very helpful and educational
where I can learn Risk Management in deep? do you suggest any good book for that?
many thanks sir
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
Am i the only one who doesnt success calculating the position size with smaller numbers? like 100$, 500$…