TradeStaqDocumentation
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Risk Management

Effective risk management is the key to long-term trading success.

Position Sizing

Trade a percentage of your available balance.

Recommended sizes:

  • Conservative: one to five percent per trade
  • Moderate: five to ten percent per trade
  • Aggressive: ten to twenty percent per trade

Stop Loss

A stop loss automatically closes your position when price moves against you.

Setting Stop Loss in Signal:

{
  "action": "buy",
  "symbol": "BTCUSDT",
  "stopLoss": "49000"
}

Take Profit

Take profit closes your position when price reaches your target.

Setting Take Profit in Signal:

{
  "action": "buy",
  "symbol": "BTCUSDT",
  "takeProfit": "52000"
}

Leverage Management

Higher leverage amplifies both gains and losses.

Recommended leverage by experience:

  • Beginner: 1x to 3x
  • Intermediate: 3x to 5x
  • Advanced: 5x to 10x

Risk Checklist

Before every trade, verify:

  • Stop loss is set
  • Position size is appropriate
  • Leverage is manageable
  • You can afford to lose this trade

DCA Risk Considerations

When using Dollar Cost Averaging, additional risk factors apply:

Position Size Growth

Each DCA level increases your total position:

Level 1: 25% = $2,500
Level 2: 25% = $2,500
Level 3: 25% = $2,500
Level 4: 25% = $2,500
Total:   100% = $10,000

Maximum Exposure

Calculate your worst-case exposure:

  • Max Position = Sum of all DCA level sizes
  • Max Loss = Max Position × Stop Loss Percentage

DCA Best Practices

  1. Set max levels - Limit how many entries are allowed
  2. Use stop-loss - Protect against continued adverse movement
  3. Size appropriately - Each level should be a fraction of total
  4. Monitor actively - Watch position size as levels fill

For detailed DCA configuration, see DCA Guide.

Next Steps