Hello people. In todays video I will explain how to calculateyour position size while trading bitcoin. If you are familiar with any kind of trading, you should know that position sizing is at least as important as your trading approach. After I tell you the logic of position sizingand how to calculate it, we will look at couple of instances. So dont fear, at the end of the video youwill be able to calculate your position size no matter what. In this video, I will show you how to calculateyour position size step-by-step. Position sizing in bitcoin, is not differentfrom location sizing in forex-markets or stock market. After this video, you are able to readily calculateyour position size while trading both, bitcoin and alt-coins. There are 4 steps to follow while calculatingposition sizing First step of posture sizing is to decideyour total risk per trade.What does it signify? So lets say that you have 10000 dollarsin your history and you decided to risk no more than 2% per swap. That means your maximum loss per market willbe 200 dollars. Of route some people might be willing torisk more than 2 %. Also some people can be more conservativeand they would want to likelihood only 1% of their chronicle immensity, per busines. So, first step of prestige sizing is to decideyour total risk per swap. For sample, Lets say that our accounting has1 0000 dollars of equilibrium, and our total hazard is 2% of the report, which equals to 200 dollars. Second step of arrange sizing is to decideyour stop-loss. You should never take a trade without a stop-loss. Your stop loss extent should be based on yourtechnical analysis, irrespective of your balance. What I intend is you should decide your stop-loss-pointbefore opening a market. And after that, you should decide its own position. You should never decide your trade-position-sizebefore deciding your stop loss stage. With that point of view, you will be morepicky while taking a trade and you will lose less commerces on the long run.After deciding your stop-loss point, you shouldcalculate your risk per one heap. You can calculate health risks by simply extractingyour stop-loss-price from your entry-price. The list you get will be your risk per oneBitcoin. The last step to find your position size isto, divide your total threat per market, to risk per one bitcoin. The numeral you located is the number of bitcoinsyou should buy. With abusing this 4 paces you are eligible to calculateyour position size in every trade. You can also use an outdo membrane as positionsize calculator as I do. Now lets look at two examples of positionsizing with a bitcoin to dollar duet and an alt-coin to bitcoin pair. We shall begin with the bitcoin to dollar chart.Okay causes insure the daily show on Bitcointo USDT pair. I will not spend time on technological analysisand open a hypothetical primacy. Again, I am reiterating, it is not a real trade, because, in this video, I am not explaining a trading strategy or the performance indicators. Lets say that you determine a corroborate at 8600 height. And you open a sell, when stochastic RSIindicator gives you a buy-signal at around 8700. Lets say that you placed a target toll at10000 dollars and your stop loss is at 8100 dollars. In another video we will discuss how to settake-profit and stop-loss costs. But in this video I just exploited 2 random pricesfor this example. Even if it is a hypothetical craft, we havea nice risk-reward ratio of 2.20. Remember in our scenario, our peak riskper market was 200 dollars, with a balance of 10000 dollars, and 2% threat per busines. And in this trade, our likelihood for 1 bitcoinis 600 dollars. So if we divide 200, which is our maximumrisk per transaction, to 600, which is our risk per 1 bitcoin, we will find our liberty positionsize which is 1/3 of a bitcoin.You can calculate the health risks per trade by multiplyingyour total fund with your risk percentage. And your risk for 1 bitcoin ethic will becalculated by extracting your stop-loss point from your entry rate. Your position sizing will be found by dividingyour risk per sell to gamble per 1 bitcoin. You can do the same math with short business, however you will find a negative number which entirely drives punishment Now gives look at an alt-coin to bitcoinpair. Since there are lots of digits while tradingalts, it gazes harder to calculate your position size. But the logic and steps you are able to do to calculateyour position size are exactly the same. I opted Litecoin to Bitcoin pair which I traderegularly. Makes say Our total asset is 0.4 Bitcoin, and our peak loss per trade is 2% again. This dedicates us a peak gamble of 0.008 Bitcoinper trade. One more duration I will open a hypothetical importance. I dont want to spend time on technical analysisand search for a real trade now, since it is not a trading policy video.In this scenario, the Mac-D line throws usa crossover under 0 and we will open trade Then the bar departs over the 20 ExponentialMoving Average. So we open a commerce at 4630 satoshis andour stop loss is at 4510. Our take profit point is at 4870 satoshis, so with this trade, we have a risk-reward ratio of 2. It is a good ratio for a position even ifit is hypothetical. In succession to calculate our peril per 1 Litecoin, we should subtract the stop-loss from the entering price.So, our risk for 1 LTC is 0.00012 Bitcoin. After calculating our peril per 1 Litecoin, we should divide maximum risk to trade to gamble per one lite copper, in order to calculateour right position size. Our right rank immensity is 66. 66 Litecoinin this scenario. We can use the same excel formulas while calculatingposition width with alt-coins. I recommend you to use the excel sheet ora calculator since it is easy to make a mistake with long digits. Even a simple mistake, or a lost 0 cancost you thousands of dollars. In line-up to avoid these kinds of mistakes, you can create a simple excel membrane like this ..