ADVANCED

CRYPTOCURRENCY
TRADING
PEOEYE Academy Of Business Education (Pvt) Ltd

TRADING PLAN
 TRADING PLAN
Based on a (______________________) account size we only ever want to risk 1%

First, we have to work out what 1% is of your account balance. Simply use this method.

Divide your account balance by 100 to find 1% and then multiple by how many percent. For example,
$5,000 divided by 100 is $50 which equals 1%.

My account balance is (_________________) divided by 100 = (__________) which equals 1%.

By using this risk management method, it will prevent you from taking unnecessary trades out of emotion,
lack of patience or greed. As it will force you to think, do I really need this trade in my life?

Depending on the trade you have analyzed, you will first need to decide where to place your stop and
where to place your targets, otherwise it is not a trade.
❖ Do I NEED to take this trade?

▪ This question will prompt you to rethink and analyze the trade once more, ensuring you have as many confluences as possible before
executing. The saying goes, check twice, cut once.

❖ Can you place a good stop loss?

▪ This is the most important question you need to ask. Can you actually place a stop loss and is it a realistic stop loss? Does your stop
allow your trade enough space to breathe? Many traders simply click buy or sell and then add a stop loss, or they use the same stop
loss every single trade without taking into consideration each trade is different. Our trades always need to be predetermined prior to
execution.

❖ Why are you taking this trade?

▪ This question will ask yourself to consider the reasons behind you placing your trade, is this an emotional based trade? Are you taking
you taking this trade because you have not made enough money this week? Revenge trading? Or is this trade set up a logical set up
based on your trading rules and plan?

❖ Based on your stop loss, what will you risk on this trade?

▪ This question will prompt you to consider your position size based on your risk percentage.

❖ What is your target?

▪ A trade is not a trade unless you know where your target is. Stop loss is the most important part of any trade but your target is equally
just as important.
❖ If this trade lines up with your analysis, why are you not taking this trade?

▪ This question will encourage you to take your own analysis. As traders sometimes we can be great at predicting price, but we fail to
act upon our own analysis.

❖ How will you feel if you were right, but you did not take the trade?

▪ This question will prompt you to remind yourself of the time you were right with your prediction but failed to act on it. When you
remind yourself of this, it will encourage you to take the trade.
 MONEY MANAGEMENT PLAN
(MEDIUM)
▪ 3 : 1 Reward to Risk Ratio

▪ Start with 1% risk from starting balance.

▪ After a win – go to 2% risk from starting balance.
▪ After a loss – go to 1% risk from starting balance.
▪ Whenever you win after a loss – go to 2% risk from starting balance.
▪ After every win – go to 2% risk from ending balance (equity).

▪ After 5 Winning Trades go back to 1% from starting balance. Example :

▪ $5000 – 1% risk (from 5k) – Win = +$150
▪ $5150 – 2% risk (from 5k) – Win = +$300
▪ $5450 – 2% risk (from equity / $5450) – Win = +$324
▪ $5774 – 2% risk (from equity / $5774) – Win = +$342
▪ $6116 – 2% risk (from equity / $6116) – Loss = -$122
▪ $5994 – 1% risk (from starting balance (5k) – Win = +$150
▪ 6144 – 2% risk (from starting balance (5k) – Win = +$300
▪ 6444 – 2% risk (from equity / $6444)
 MONEY MANAGEMENT PLAN
(SLOW)
▪ 3 : 1 Reward to Risk Ratio
▪ Start with 0.2 risk from starting balance.

➢ After a win add 0.2% risk from starting balance

➢ After a loss go back to 0.2% risk from starting balance.

▪ After 5 Winning Trades go back to 0.2% from starting balance.

Example :

✓ $5000 – 0.2% risk (from 5k) – Win = +$30

✓ $5030 – 0.4% risk (from 5k) – Win = +$60
✓ $5090 – 0.6% risk (from 5k) – Loss = -$30
✓ $5060 – 0.2% risk (from 5k) – Win = +$30
✓ $5090 – 0.4% risk (from 5K) – Win = +$60
✓ $5150 – 0.6% risk (from 5k) – Loss = -$30
✓ $5120 – 0.2% risk (from 5k)
 MONEY MANAGEMENT PLAN
▪ 3 : 1 Reward to Risk Ratio
(AGGRESSIVE)
▪ Start with 2% risk from starting balance.
▪ Single losses are not cut on leverage.
➢ Drop to lowest risk AFTER TWO losses.

➢ After 5 Winning Trades go back to 2% from starting balance.

Example :

✓ $5000 – 2% risk (from 5k) – Win = +$300

✓ $5300 – 2% risk (from ending balance / $5300)) – Win = +$318
✓ $5618 – 2% risk (from ending balance / $5618) – Loss = -$112
✓ $5506 – 2% risk (from ending balance / $5506) – Loss = -$110
✓ $5396 – 2% risk (from starting balance / 5k) – Win = +$300
✓ $5696 – 2% risk (from ending balance / $5696) -Loss = -$108
✓ $5288 – 2%risk (from ending balance / $5288) – Win = +$317
✓ $5605 – 2% risk (from ending balance / $5605) – Win = +$336
✓ $5941 – 2% risk (from ending balance / $5941)
Continue
THANK YOU