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Question on $BTC leverage and drawdowns
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?
4 comments · 1 points
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.