Question on $BTC leverage and drawdowns

Question

Been diving deeper into different leverage strategies for $BTC perpetuals, trying to understand how more experienced traders size their positions to account for significant drawdowns. It feels like every time I think I've got a handle on the typical volatility, a new event pushes it further than I'd anticipated. What's your approach to setting max leverage or position size when considering the potential for a 30-40% dip from the highs, especially if you're trying to capture larger moves?

hannah37 · Accepted Answer

It's a common challenge. Instead of max leverage, I focus on max loss per trade, which dictates position size. That way, even if volatility spikes, my capital exposure is capped regardless of how far price moves against me.

kittipongthongchai · Answer

ผมว่ามันก็เหมือนเกมงูตกบันไดนั่นแหละครับคุณ ยิ่งใช้เลเวอเรจเยอะ ยิ่งมีโอกาสเจอจังหวะหลุดโลกที่คาดไม่ถึง ขนาดผมยังเคยคิดว่าเข้าใจตลาดแล้วนะ สุดท้ายก็โดนลากไปจนแทบกลับมาไม่ทันเหมือนกัน

riku91 · Answer

This is a great question. I've been wrestling with similar thoughts regarding BTC leverage. Do you factor in things like funding rates when deciding position size, or is it more about the potential price movement itself?

ren_liu · Answer

This is a great question. I've been wrestling with the same thing, especially with how quickly things can move in crypto. Do you factor in the funding rates when thinking about your drawdowns, or mostly just the price movement itself?

Question on $BTC leverage and drawdowns

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