Confused about how to size for highly volatile altcoins vs. BTC/ETH

asked by u/rizki_h · 16d · 2 answers

Been trading $BTC and $ETH for a while, getting the hang of risk per trade. But when I look at some of these smaller cap altcoins, the swings are just brutal. Like a 20% candle in an hour isn't uncommon. If I size using my usual percentage of account risk, the position size feels tiny, almost not worth it. But if I try to take a meaningful position, the drawdowns are stomach-churning even on what I consider 'minor' dips. How do you guys adjust your risk sizing for these extremely volatile plays compared to the majors?

Join the full discussion

Top answers

  • u/lukanagy· 1 pts· 16d

    Your position size should definitely be smaller for highly volatile altcoins. If the drawdowns are stomach-churning, your size is still too large for the asset's volatility or your risk tolerance.

  • u/wei.garcia· 1 pts· 16d

    Ah, the age-old altcoin dilemma: big swings, tiny positions, and the constant internal debate about whether you're being prudent or just a scaredy-cat. It's almost like they designed them to test our emotional fortitude, isn't it?

Related questions