Read time: ≈ 13 min • Last updated: December 2, 2025 • Live-tested rules
2025 Update: I keep my losses under 1 % per trade by following 8 simple rules—no matter how bullish the narrative. Below are the exact position-size formulas I use, the stop-loss levels that actually work in 2025, and a free Google-Sheet calculator you can copy in 30 seconds.
📊 My 2025 Stats (YTD)
- 232 closed altcoin trades
- Average loss per losing trade: 0.9 %
- Win-rate: 48 % (profit factor 1.9)
- Max draw-down: 6.2 % (versus 58 % portfolio gain)
1. Why I Never Break the 8 Rules
In 2021 I lost 38 % of my portfolio in 11 days because I yolo’d into a dog-metaverse coin without a stop-loss. Since then I treat every trade like a business transaction: pre-defined risk, pre-defined exit, no emotion.
2. Rule #1 – 2 % Max Risk Per Trade
This means if my account is $10 000, the most I can lose on any single trade is $200. Not 2 % of the position size—2 % of total equity. Never negotiate this number.
3. Rule #2 – Position Size Formula (Free Sheet)
Formula I use:
Example: $10 k account, 2 % risk, entry $1.00, stop $0.85 → Position = 1 333 coins. I built a Google-Sheet that auto-calculates this—link below.
📥 Download Calculator4. Rule #3 – Stop-Loss Placement That Actually Works
- Support / Resistance flip + 2 % buffer
- ATR-based (1.5 × 14-day ATR) for swinging coins
- Time-based: exit if trend doesn’t follow within 48 h
5. Rule #4 – Risk/Reward Minimum 1:2
If I risk 1 %, target must be ≥ 2 %. Anything less and the math doesn’t work long-term. I set the take-profit order immediately after entry—no “I’ll see how it goes”.
6. Rule #5 – Max 6 Concurrent Trades
More positions = more correlation risk. I cap myself at 6 open trades. If I see a 7th setup, I either close the weakest or skip the new one.
7. Rule #6 – No Leverage Above 3×
Leverage multiplies risk, not just reward. My max is 3× and only on BTC/ETH. For altcoins I use spot only. This single change cut my max draw-down from 28 % to 6 %.
8. Rule #7 – Pre-Trade Checklist (Screenshot)
- Position size calculated?
- Stop-loss placed?
- Take-profit placed?
- Risk ≤ 2 % equity?
- Total open trades ≤ 6?
- Leverage ≤ 3×?
- News catalyst confirmed?
I literally tick each box before I hit “Buy”. Takes 45 seconds.
9. Rule #8 – Post-Trade Review Every Friday
Every Friday at 17:00 UTC I export my PnL CSV and log:
- Entry / exit price vs plan
- Emotional state (1–5 scale)
- Was I distracted? (phone, Twitter, etc.)
This keeps me honest and highlights patterns (e.g., I lose more when I trade after 10 pm).
10. Tools I Use in 2025 (Free & Paid)
| Tool | Use | Cost |
|---|---|---|
| TradingView | Charts + ATR | Free / $15 mo |
| CoinLedger | PnL export | Free up to 25 trades |
| Coingecko API | Live price feed | Free |
| Ledger Nano | Long-term storage | $79 |
11. FAQ – What If I’m Wrong 5 Times in a Row?
A: With 2 % risk each, that’s ‑10 % equity. I pause for 48 h, review setups, and drop risk to 1 % until I’m back above my 20-day moving equity line.
A: Only after +1.5 R. This locks at least 0.5 R profit and keeps the original 1:2 math intact.
A: Yes, but shrink risk to 0.5 % and max 3 trades/day. Lower time-frames = noise.
12. Conclusion & Calculator Download
I don’t need to predict the market—I just need to survive it. These 8 rules keep my losses small and my winners big. Copy the calculator, tick the checklist, and you’ll never gamble again.
Ready to trade like a robot?
This article is for educational purposes only and does not constitute financial advice. Crypto trading carries high risk; always do your own research and never risk more than you can afford to lose.