Cryptocurrency Day Trading Money Management

Draw Down Crypto Money Management Calculator

In any biz, so that to make a profit a btcusd trader must learn how to manage risks. To make profits in bitcoin intra-day Trading you need to learn about the different bitcoin equity management strategies illustrated on this learning bitcoin trading day trading guide web site.

In btcusd crypto currency online trading, the risk to be managed are potential losses. Using bitcoin risk management rules will not only protect your btcusd crypto currency account but also make you profitable in the long-run.

What's Draw-Down in BTCUSD Crypto Currency Trading?

As bitcoin traders the number 1 risk in bitcoin day trading is known as draw down - this is the amount of money you have lost in your cryptocurrency account on a single btcusd crypto currency trade.

If you have $10,000 btcusd crypto currency capital & you make a btcusd crypto currency loss in a single btcusd crypto currency trade of $500, then your btcusd crypto currency draw down is $500 divided by $10,000 dollars which is 5 percentage% bitcoin crypto currency draw down.

What's Maximum BTCUSD Draw Down?

This is the total sum of money you as a btc/usd trader have lost in your bitcoin trade account before you start making profitable trades. For example, if you have $10,000 in bitcoin day capital & make five consecutive losing bitcoin trades with a total of $1,500 bitcoin loss before making 10 winning trades with a total of $4,000 dollars bitcoin profit. Then the bitcoin draw-down is $1,500 divided by $10,000 dollars, which is 15% maximum btcusd crypto currency draw down.

Draw Down Bitcoin Money Management Calculator - Day Trading Bitcoin Risk Management Course

BTCUSD Crypto Currency Draw Down is $442.82 (4.4%)

Maximum Bitcoin Draw-Down is $1,499.39 (13.56%)

To learn how to generate above in bitcoin intra-day Trading reports using MT4 btcusd crypto currency platform: Generate Bitcoin Reports in MetaTrader 4 Tutorial - How to Minimize Day Trading Max Loss - Best Money Management Strategy Bitcoin Account Management Strategies

Draw Down Money Management Calculator

The in bitcoin day trading example illustrated below shows the difference between risking a small percent of your bitcoin capital compared to risking a higher percentage. Good Draw Down Money Management Calculator principles requires you not to risk more than 2% of your total bitcoin trading equity on 1 single bitcoin trade.

Bitcoin Percentage Risk Technique

Draw Down Money Management Calculator - Draw Down Crypto Money Management Calculator

2 percent and 10 percent Bitcoin Trade Funds Management Rule - Draw Down Money Management Calculator - Day Trading Bitcoin Risk Management Course

There is a big contrast between risking 2% of your btcusd equity compared to risking 10% of your equity on one bitcoin trade.

If you happened to go through a losing bitcoin streak & lost only 20 trade transactions in a row, you would have gone from beginning btcusd crypto currency equity balance of $50,000 dollars to only having $6,750 left in your account if you risked 10% on every bitcoin trade. You would have lost over 87.50 % of your bitcoin trading equity.

However, if you only risked 2 % you would have still had $34,055 in your bitcoin account which is only a 32 percentage loss of your total bitcoin account equity. This is why it is best to use the 2 % risk management method in bitcoin day trading.

Difference between risking 2 % and 10% on a single bitcoin crypto currency trade is that if you risked 2 % you would still have $34,055 in your btcusd crypto currency account after 20 losing trade transactions.

However, if you risked 10 % you would have only $32,805 in your bitcoin account after only five losing btcusd crypto currency trades that's less than what you would have in your trading account if you risked only 2% of your account and lost all 20 bitcoin crypto transactions.

The point is that you as a btcusd trader want to setup your Draw Down Money Management Calculator rules so that when you do have a loss making period, you'll still have enough in bitcoin intra-day Trading equity to open a trade transaction next time.

If you lost 87.50% of your in btcusd crypto currency intra-day trading capital you'd have to make 640% profit to get back to break-even.

As compared to if you lost 32 percent of your in btcusd crypto currency day capital you'd have to make 47% profit to get back to the break-even. To compare it with btcusd crypto currency examples 47 % is much easier to break even than 640% is.

The chart below shows what percentage you'd have to make so that you get back to break even if you were to lose a certain percentage of your in bitcoin day capital.

Concept of BreakEven - How to Minimize Intra-Day Trading Max Loss

How to Minimize Day Trading Max Loss - Draw Down BTCUSD Funds Management Calculator

Cryptocurrency Account Equity and Break Even - Cryptocurrency Intra-Day Trading Money Management - How to Minimize Intra-Day Trading Max Loss

At 50% btcusd draw-down, one would have to earn 100% on their bitcoin capital - a task accomplished by less than 5% of all bitcoin traders world-wide - just to breakeven on a bitcoin account with a 50 % loss.

At 80% bitcoin draw down, one must quadruple their bitcoin trading equity just to bring it back to its original equity. This is what is known as to "break-even" - which means - get back to your original bitcoin trading balance that you started with.

The greater the equity you as a btc usd trader lose, the harder it is to make it back to your original bitcoin trading account size.

This is why you should do everything you can to PROTECT your bitcoin trading account equity. Do not accept to lose more than 2% of your bitcoin equity on any one single bitcoin trade.

Bitcoin Money management is about only risking a small percentage% of your bitcoin capital in each bitcoin trade so that you can survive your losing streaks and avoid a big draw-down on your account.

In bitcoin crypto currency day trading, traders use stop loss crypto orders which are put in order to cap bitcoin losses. Controlling risks in bitcoin day trading involves putting a stoploss order bitcoin order after placing an new bitcoin trading order.

Effective BTC/USD Crypto Equity Management

Effective in bitcoin intra-day Trading funds management requires mitigating all risks in bitcoin day trading & one should come up with a equity management bitcoin system and a equity management in bitcoin day trading plan. To be in bitcoin day trading or any other biz you must make decisions that-involve some risk. All in bitcoin day trading factors should be interpreted to keep risk to a minimum and use the above bitcoin money management tips on this article - How to Minimize Day Trading Max Loss.

Ask yourself? Some BTCUSD Crypto Currency Tips

1. Can the bitcoin risks to your in bitcoin intra-day Trading activities be identified, what forms do they take? and are these clearly understood and planned for in your in bitcoin intra-day Trading plan? All the bitcoin risks should planned for in your in bitcoin intra-day Trading plan.

2. Do you grade the risks encountered by you when in btcusd crypto currency day trading in a structured way? - Do you have a equity management strategy & a in bitcoin intra-day Trading plan? have you as a trader read about this learning topic in bitcoin day trading guide which is well covered and discussed here on this learn in bitcoin day web site for beginner traders.

3. Do you know maximum potential trading risk of each exposure for each trade which you place?

4. Are trading decisions made on the basis of reliable and timely bitcoin market information & based on in bitcoin day trade strategy or not? Have you as a trader read about in bitcoin day systems on this studying bitcoin web site.

5. Are the btcusd crypto currency risks big in relation to the trade turnover of your invested btcusd crypto currency capital & what impact could they have on your btcusd crypto currency profits margins and your bitcoin account margin requirements?

6. Over what time period does the in bitcoin intra-day Trading risks of your in bitcoin intra-day Trading activities exist? - Do you hold in bitcoin day trades long term or shortterm? what type of bitcoin trader are you?

7. Are the exposures in trading one off or are they recurring?

8. Do you know about methods in which bitcoin intraday trading risks can be reduced or hedged & what it would cost in terms of profit if you did not include these stipulated measures to cap potential loss, and what impact would it make to any up side of your btcusd crypto currency profit?

9. Have your btcusd crypto currency equity money management guidelines been adequately addressed, to ensure that you make & keep your in bitcoin day profits.

Cryptocurrency Intra-Day Trading Money Management - How to Minimize Day Trading Max Loss - Best Money Management Strategy Bitcoin Account Management Strategies

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