TP, SL and risk management
The only part of a trade you fully control is the size of the loss. Profit depends on the market; losses depend on you.
The levels the service computes
Each signal comes with four levels: TP1 is 1% from the entry price, TP2 is 2%, TP3 is 3%, and the stop-loss is 1% in the opposite direction. These are fixed percentages, not a volatility- or structure-based calculation.
Why the stop matters more than the target
A trade without a stop has no loss limit. On leveraged futures that means a single bad move can take back the result of many good trades — and with enough leverage, the whole deposit through liquidation.
The ratio of TP3 to SL here is roughly three to one. That keeps the approach viable even if fewer than half the trades are profitable — but only if the stop is genuinely in place and you do not move it.
Sizing a position
Example: a $1,000 deposit, willing to risk 1%, which is $10. The stop is 1% away from entry. That makes the position around $1,000 notional. At 5x leverage it needs $200 of margin — already a fifth of the account in a single trade.
- 1Decide how much money you are willing to lose on one trade. A common reference point is 1–2% of the deposit, no more.
- 2Measure the distance from entry to stop as a percentage.
- 3Divide the acceptable loss by that distance — that is your position size.
- 4Check that liquidation sits well beyond the stop at that size. If it does not, reduce leverage rather than moving the stop.
What leverage does
Leverage does not improve your odds — it enlarges the position for the same margin and moves liquidation closer. A 1% adverse move at 20x is 20% of the margin you put up.
Under the leverage presets the order form shows the notional value of the position and the required margin. Look at those numbers before sending: the quantity field is denominated in the base coin and is easy to mistake for a dollar amount.
Common mistakes
- Moving the stop "just a bit further" as price approaches it.
- Averaging into a losing position, increasing risk instead of cutting it.
- Opening several trades on correlated pairs and calling it diversification — in crypto almost everything follows bitcoin.
- Placing the stop exactly on a round number or an obvious extreme, where it will be taken out first.