Risk Management for Crypto Signals

Trading by the Numbers

Risk management is the only thing that separates a trader from a gambler. Even with a 40% win rate, a trader with good risk management can be profitable. A trader with a 90% win rate and zero risk management can go broke in a single trade.

The 1-2% Position Sizing Rule

At Yaga Calls, we strictly enforce a 1-2% risk per trade rule. This means that if your stop-loss is hit, you only lose 1% or 2% of your total account balance—not 1% of your position size.

Example Scenario:

• Balance: $10,000
• Risk (1%): $100 per trade
• Stop Loss Distance: 10%
• Required Position Size: $1,000

By calculating your size based on your risk, you ensure that no single market event can wipe out your hard-earned capital.