Essential rules regardless of strategy.
Limit exposure to algorithmic synthetic assets to under 10% of your total portfolio.
Define your exit points (take-profit and stop-loss) before opening a position.
Recognize that certain strategies or instruments can result in a complete loss of capital.
Track new positions closely—daily monitoring is recommended during the initial weeks.
Avoid allocating everything to a single strategy; diversify across approaches and instruments.
Plan whether to compound gains or take profits based on your overall strategy and risk tolerance.
Frequent claims or trades can be taxable events—plan for tax implications.
Implement stop-losses both as mental rules and, where possible, enforced on-chain mechanisms.
Conservative: 2–5%
Balanced: 5–8%
Aggressive: 8–10%
Never: >10%
Position sizing should align with your risk tolerance, strategy, and the overall portfolio allocation.
Set exits before entering. Don't rationalize staying when triggers hit.
Last updated 1 month ago