Risk management is critical to long-term success in crypto trading. This post covers simple but effective rules to protect your capital when using Kryptomf_ai.
1. Position Sizing and Leverage
Only risk a small percentage of your account per trade (e.g., 1-5%). Avoid high leverage that can quickly wipe out your account.
2. Stop Losses and Take Profits
KryptoMF uses profit targets to lock in gains. Consider setting stop losses to limit downside risk.
3. Understanding Drawdown and Win Rate
Drawdown measures peak-to-trough losses. Win rate is the percentage of profitable trades. Both help you evaluate your bot’s performance realistically.
4. Emotional Bias vs Systematic Rules
Bots help remove emotional trading mistakes like FOMO and panic selling, but they don’t eliminate risk. Always monitor and adjust your strategy.
Conclusion
Good risk management keeps you in the game longer and helps KryptoMF work effectively for you.