KnowledgeBasics📚 Guidebook

Risk management in trading

Risk management also helps determine how large losses can become. Besides signals and strategies, what counts above all is how much is risked per trade and how losses are limited — it is not a guarantee of success.

Test it free now →All features

The Explanation

All the important aspects explained simply.

Ruler

Position Sizing

Common rule of thumb (not a recommendation for your situation): risk at most 1–2 % of total capital per trade. With a 10.000 EUR account, that would be 100–200 EUR of risk per trade. The higher the share, the greater the risk of ruin.

Shield

Stop-loss is mandatory

Every trade needs a predefined stop-loss BEFORE it is opened. 'Just watching it' is not a plan — that is hope. A stop-loss does not secure losses (price gaps, slippage).

Target

Diversification

Not everything is tied to a single coin, strategy, or direction. Multi-symbol trading with correlation filters can spread risk — but cryptocurrencies are often highly correlated and often fall together.

⚡

Leverage discipline

High = Leverage closer to . Liquidation Common rule of thumb (no recommendation for your situation): 3–5× is enough for most strategies, 20× and more is considered a sign of impatience. At 10×, even a countermove of around 10 can be enough to liquidate the % position.

Chart

Drawdown limits

The maximum acceptable drawdown must be defined beforehand. If it is reached, trading will pause – not attempt to 'win'.

🧘

Mind the psychology

Tilt, revenge trading, overtrading after losses — all of these are dangerous. A Bot reduced version of these factors when executing trades. Interventions and settings remain human decisions — you have to actively manage them.

Understood? Test FuturesBot now

Test it yourself in Paper mode — simulated, without real money.

Test it free now →

FuturesBot risk management

The product feature

Paper Trading

Learning without real money

What is Bot

Basics

⚠️ Risk Warning: FuturesBot is a technical automation tool — no investment advice, no investment recommendation, no asset management. You determine strategies, leverage and stake yourself. Crypto futures trading can lead to total loss; stop-loss and protection features do not reliably limit losses (price gaps, slippage, liquidation). No profit guarantee; past or simulated results are not an indication of future results. Check every setting thoroughly in paper mode first. Full Risk Disclosure

Risk management in trading

The Explanation

Understood? Test FuturesBot now

Related pages

Product

Buy & Compare

Exchanges

Knowledge

Legal

Partner

Contact