Thursday, March 16, 2023

Position Size & Risk Calculation

Assumption

Portfolio Size : 100 USD

Risk/Trade : 5% i.e. 5 USD


  1. Calculate Open Price (with DCA)

  1. Calculate Risk 


  2. Calculate Position
    1. Like in above screen shot , risk is 4.88% on 1 x , and suppose I am ready to loose 5 USD on this trade so my position size would be


  3. Calculate Leverage
    1. Safe Leverage


    2. Liquidation Leverage:  In this example due to high leverage (21 here ) you might get liquidated if  eth doesn't fall/short . 




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