Risk Management for Volatile Crypto Trading

Without proper risk management, volatile markets will destroy your capital.

The Risk Management Framework

The 1-2% Rule: Never risk more than 1-2% of your account per trade.

Volatility Adjusted: Reduce size in high volatility periods.

Technical Stops: Place below support/resistance

Volatility Stops: Use ATR to set dynamic stops

Time Stops: Exit if trade doesn't work in expected time

Correlation: Don't hold correlated assets

Concentration: Maximum 20% in any single asset

Cash Position: Keep dry powder for opportunities

FOMO Management: Stick to your plan

Revenge Trading: Take breaks after losses

Overconfidence: Respect the market