position sizing
Coverage of position sizing in the Nexus archive.
- What does “risk management” actually mean in crypto?
The article questions the effectiveness of traditional risk management tools in crypto markets, noting that tools like stop losses and VaR models fail due to non-normal distributions and unstable correlations. The author explores whether crypto risk management is merely risk acceptance and shares a pessimistic approach of assuming positions could go to zero.
- +$26K in a single day on x75 (Jan 2025). Currently in drawdown YTD. Here's how I size on the way up and how I protect on the way down.
A trader with 6 years of leveraged crypto trading experience shares strategies for managing high leverage (x50–x75) through precise position sizing, volatility-adaptive scaling, and trailing stops. Despite a +$26K single-day profit in January 2025, they are currently in a 2026 year-to-date drawdown, emphasizing risk management over leverage as the key to success.
- Everyone’s trying to nail the perfect SOL entry, but the part that gets ignored is how much gets shaved off before you’re even in the trade.
The article highlights how converting fiat to stablecoin to SOL can incur up to 2% in costs from spreads, fees, and slippage, which are often overlooked compared to price movement analysis. It questions whether traders account for these entry costs in position sizing, suggesting they significantly impact returns over time.