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RHby u/rizki_h·12hQuestion

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

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?

2 comments · 1 points

2 Comments

LUu/lukanagy·11h

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.

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WGu/wei.garcia·6h

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?

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