Balance Management & Trading Plan

Balance management is one of the most important things when it comes to trading. If you want to become a successful trader in long-term you just can’t avoid this theme.

“You win some you lose some as long as the outcome is income.”

So in nutshell, trading is definitely not about winning all the trades. That’s kinda impossible. We all have losing trades but if we can make profit in long term we just won the game. This is how trading works and now let’s get to the point;

If your trading capital is $100,000 then you should separate $90,000 and keep only $10,000 for trading. The proportions really depend on how much risk you take but this is the ideal splitting. This is because you don’t want to risk all of your capital on a single trade despite of the fact you will definitely use stop loss…

As we trade on bybit which is the most advanced platform for leverage trading the splitting can be done really simply. Just transfer your capital to the Spot account and leave your trading balance in Derivatives account (in USDT). Transfering through spot-derivatives is free and doesn’t take more than a second.

Bybit is the most advanced platform for leverage trading with millions of active traders. If you register an account for your trading journey we give you 60% discount from the full price of the Bitcoin Indicator. Registration does not require KYC. Claim your discount at Checkout!

So once you got your trading balance separated from your capital you are ready to go. The next step is choosing Leverage, Stop Los and Take Profit. The Bitcoin Indicator team has developed a “High Leverge Trading Methode” which fits mostly for Bitcoin, however it’s a “High Risk – Hish Reward” methode and it’s definitely not for beginners. You can read more about it in the User Guide but for now let’s stay with the more safety way of trading.

Trading Plan

When I mention next step is SL and TP I don’t mean chart analysing, yet. I mean you must to set a trading plan. Without a proper plan you won’t be able to make profit in long-term and you will just waste your time and money on trading. In the next few lines I’ll set up a trading plan for you so it’s easy to understand!

Let’s say you wanna trade every kind of altcoins not just Bitcoin because this way you can find entries way more often. Let’s say you wanna trade only the 30m timeframe whatever coin it is. In this case using 10x leverage on every trade you make is a pretty good choice. This way you will have around ~7% gap between your entry and liquidation price which is not much when it comes to altcoins but you can easily make 30-40% profit on a single trade. Now we have the Leverage set so it’s time to find out the SL & TP.

The best using 1:2 risk-reward ratio which means if your SL will be at -2% then TP should be +4%. At -4% SL, TP should be +8% and so on. This case you will be profitable as long as 50% of your trades win, however it can be tricky as you can’t always predict such big moves. That’s why I like trading this way;

If my Stop Loss would be at -2% my Take Profit will be around +3%. In case if my SL is -4% TP would be at +5%. So as you can see I add 1% to SL to get my TP. This way the chance of winning will increase significantly. If you do the math you will see this setup let you to make $20K-$30K in 100 trades from only $100 if the winrate is 60%. So you have to win only 60 trades form 100 to make more than 100x gain.

bitcoin chart

Obviously you can’t just open a trade randomly and hope for a winning one that’s why we developed the Bitcoin Indicator which will help you to find the best entries. Using the strategies from the User Guide will increase the chance of winning so you might reach 60% winrate in long-term.

Be aware that SL should be calculated according to the current market situation so I can’t tell you setting it to -2% will be always a good choice. Analyse the chart yourself and once you got your SL just add plus 1% to get your TP as well. Always check if your predicted Take Profit level is likely to be hit. Use previous highs & lows, trend cloud and/or money flow levels for this.

Also if you want to trade lower timeframes with different leverage you can play around with the numbers at winrate.io to find out the best trading plan possible.

Set your trading plan & start your journey!

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