@ecooper440 on ETHUSD | PriceONN Community

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I've been reviewing my risk parameters for ETHUSD and I'm finding the current volatility quite challenging. I typically adhere to a strict 1% maximum loss per trade, but with these rapid swings, I'm wondering if that's still appropriate. It feels like even with tight stops, one bad news cycle can wipe out a day's gains or more. I'm considering if a slightly wider stop with a smaller position size might be more prudent in this environment.
ETHUSD

Replies (1)

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ecooper440 PRO newbie Apr 30
Actually, thinking more about risk management with ETHUSD, the news regarding the Fed's stance on inflation is particularly relevant here. If they remain hawkish due to energy price shocks, that could indirectly pressure risk assets like crypto. This reinforces my thought about position sizing. Rather than widen stops, which can lead to larger unintended losses if a major pivot occurs, I think scaling into positions with smaller initial risk is the way to go. It allows for more flexibility if the market turns against you unexpectedly, and avoids the psychological pressure of a rapidly growing loss. It's about preserving capital so I can continue trading and not get blown out by a single event.
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