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DOABrownie
Mar 15, 2019 4:02 AM

Stop Loss Help Please Education

Bitcoin / U.S. dollarBitstamp

Description

This video is asking questions around the numbers on the stop side of a long position tool that TV has and how the amount number in the red changes in a strange way. please view and comment. thank you
Comments
constantine_trading
Hey there!

Question 1 and 2 depend on each other
The tool still risks 10% from your capital, which means it recalculates the position size.
Within the middle of the tool you might see your position size increasing/decreasing; therefore the risk amount jumps up and down,
because you can´t "buy" - which means the tool can' calculate - half, quarter, or even smaller position sizes.
For sure you´re able to buy 0.00000001 BTC though.

To clarify, let me use an example from your video at about 2:07:
If you enter a position at 10000, your risk is 10% and your stop is at about 9800something, your position size (!) is 5. This is calculated by the actual price of the underlying value.
A second example is at about 2:17:
If you set your stop at 9200, entering at 10000, and your risk is still at 10%, then your position size decreases to 2.
Hope this helps.

Cheers
Constantine

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