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CFD sizing with tighter stops on volatile assets like $ETHUSD
I've been trying to get a handle on risk sizing, particularly with CFDs on more volatile pairs like $ETHUSD. The conventional wisdom is to use tighter stops on these, which makes sense for capital preservation. But then my position sizes shrink dramatically, almost to the point where the move needs to be huge to make it worth the platform's spread and my time. It feels like I'm either risking too much by widening the stop or trading negligible sizes.
Am I overthinking this, or is there a trick to sizing CFDs on high-volatility assets without just going for broke or sitting on micro-lots? How do you guys balance a reasonable potential profit with prudent risk on something that can swing 5% in an hour?
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