Strategies for Managing Risk in Cryptos and Fast Moving Markets http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! How do you determine risk in 1 way markets? How do you manage risk and trade markets like cryptos and certain stocks that keep hitting all-time highs.

Ted asked us ‘How do you deal with a market like crypto where it is constantly entering new highs territory so it’s difficult to determine what your risk to reward ratio is?’ How do you determine risk in 1 way markets? How do you get onboard stuff that is ripping in one direction to the upside or downside like cryptos and certain stocks. How do we get onboard these or better how do we keep the risk managed. Let’s look at some strategies. The first one is to look on the size of the pullbacks on the moves. Look at the largest pullbacks in the moves and use that as a benchmark for the risk. So if the largest pullback is 100 pips, you could say buy at 50 pips from the high and use a 100 pips stop. That will increase the chance of you staying in the trade. You’re buying and you’re using the data you’ve got from that move to quantify the risk.

Another way is to use the average true range. If we have the range, and we know what the market generally does from low to high we can use that to frame the risk. If you’re managing risk you want to give yourself a stop that accommodates noise and then work on that for your position sizing. Number 3 is to use the number of red days…