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A Step By Step Guide to Implementing a New Method For Futures Trading

AN UPGRADED THREAD ON POSITION SIZING⚖️📊📈📉 As a newbie in futures trading back then I believed that blowing of account or getting liquidated was as a result of using outrageous leverage on Trades. @binance @cz_binance btc @trading @TradeWithThanos

Until I heard bout position sizing which is a mathematical calculation using Trading View position tool. Then that seemed to be the near perfect arm of Risk management until I thought about this upgraded method of position sizing which works like @TradeWithThanos FLICK⚡️

How do you mean you might ask? Well let's head over to the classroom🥰. We all know that before you enter any trade, you would have drawn your setup and decided the exact percentage amount you are willing to risk from your entire portfolio balance which is advisable 1-2%.

(Then it depends on your portfolio balance as individual preferences might come in). When that is done you will head over to execute the trade.

Here's a step by step guide on how to use this upgraded version of position sizing which I discovered and the formula goes thus:- TOTAL PORTFOLIO BALANCE × RISK PERCENTAGE MARGIN OF TOTAL PORTFOLIO ÷ STOPLOSS PERCENTAGE, ALL ÷ LEVERAGE OF YOUR CHOICE (10 - 1,000,000X🤣).

So let's head over to pictorial illustration and for today's illustration, We will be using BTCUSDT 4HR pair setup as shown below with position tool indicating my Stoploss percentage as 6.03% (Please note this is for illustration purpose and not a trading signal.

Then My Total Portfolio Balance will be 5 (Nice one Sapa😭) × Risk Percentage Margin of Total Portfolio= 20% (NFA as it's professionally advised to use 1-2% of your total portfolio but I understand that individual portfolio differences and greed might influence a traders bias

÷Stop Loss Percentage (6.03%) , ALL ÷ Leverage of my choice (125X). So Putting that into mathematical calculation as we all did in school days we have:- 5×20÷6.03/125= 0.13approx.

Pheew this reminds me of our big headed maths teacher in secondary school and his jumping trouser🤣. God forgive me sha🙏🥺😂

Please note, this works perfectly on CROSS MODE as there won't be need for adding margin). Using this on ISOLATED MODE will have to mean that you'll be constantly monitoring your trades to add margin. Then heading over to BINANCE APP for Live trading pictorial example,

we select our trading mode which is CROSS, Set my leverage used in calculation which is 125X, drag the margin slider till I get my final answer which is 0.13 or nearest figure to it which is 0.15, Set my Stoploss as shown on my position tool which is 17894.2.

Alas, what did you observe I will still loose my 1 if we get a 6.03% drop on BTC (The .22 difference is a result of the lil margin difference which should have been 0.13 but now became 0.15 due to it was the closest margin the slider gave me).

Now take a look at the liquidation price. I implore you to give it a practical trial and drop your feedbacks. Finally, It wasn't easy dropping this thread as the whole write up cleared close to finishing and I had to start afresh @Preciousl2c can testify😭🤣

We've come to the end of this thread. Please show some massive love and kind gesture by reacting, retweeting and dropping your kind positive comments as it will serve as encouragement to drop more premium updates❤️‍🩹

This post is based on this twitter thread.


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