💥ODINS WORD - RISK MANAGEMENT AND TRADE STRATEGIES
Last updated
Last updated
Trading is the most brutal yet wonderful psychological battlefield there is. It’s you vs you everyday. Unfortunately trading, real trading is highly misunderstood thanks to trading “influencers” and the like. If you’re looking for a way to get rich quick, this isn’t it. If you’re using your last $100 that would feed your family or pay your rent, keep it in your bank account. So how SHOULD you think? It’s very simple. Regular trading you must fall in love with the process, but with Odin Bot, you must fall completely in love with The Hunt. Hunting for profitable wallets, hunting for good risk to reward ratios, hunting for good risk management systems, hunting for your own discipline to not change mirrors just because one took 3-4 losses in a row. Stop thinking about money. Yes, that’s what we’re all here for but it’s so much more than that. Spend all of your time thinking about the Hunt. How do I manage my risk better? How do I find better wallets? How do I discipline my mind to be able to see 5-10 losing trades in a row? How do I ADD to a winner and make my wins as big as possible? Shift your way of thinking to this, and you WILL reach Valhalla.
Risk Management // Technical and Fundamental analysis don’t work. Indicators, moving averages, even support and resistance, they mean nothing unless you make them mean something. The only true edge in trading is managing your risk. The truth is no one, and I mean NO ONE, knows where the price of anything is going to go 1 second from now. A single trader with enough size can come in and completely tank or pump the price even if you have 50 indicators all telling you the same thing, and you’d have no idea. But the good news is this: No matter what, as SOON as you enter a trade it has a 50% chance of going to your profit target, and a 50% chance of going to your stop loss. (Or in our case, a 50% chance your position size goes to $0.) Knowing this, you have to focus on 2 things when using Odin: Position Size Cumulative Win Rate - Winning Size
Position Size // If you have 0.5 SOL in your account, and you are using 0.1 SOL in your Trade Size setting, you only have 5 chances to get a winning trade or your entire account is gone. This is called Risk of Ruin. It is how many losing trades in a row can you take before your account is blown. And it scales exponentially. If you are using 1% of your total account size, you’d have to have 100 losing trades in a row (minus fees) before your account is blown. Move that to 2% and now you can only take 50. 5% and you can only take 20. There is NO rule about how much to risk per trade. If you want to risk 50% of your entire account, and you are already willing to lose that, then go for it! But the key is surviving. Being able to withstand an ocean of losers to get 1 or 2 whales of a trade that will place your account in Valhalla. And rinse and repeat.
Cumulative Win Rate and Winner/Loser Size // Coming back to the idea of The Hunt and How to Think, Win Rate and PNL size matter a great deal. Let’s start with Win Rate. It’s a fine balance between maxing out the number of wallets to mirror and only having 2-3 real heaters. Each wallet has its own Win Rate. And when you add them all up, you get a Cumulative Win rate, or an average. Let’s say you are following 10 wallets, 5 have a win rate of 67%, and 5 have a win rate of 50%. You would have an Average Win Rate of 58.5%. This number should be seen as a rough estimate because although Odin is THE fastest Bot on the market, you will never enter a position at the same time as a mirror. So I like to take an additional 10-15% off of whatever my Average Win Rate is. PNL Size A wallet can have a 90% win rate, but if their winners only make 2% and their losers lose 50% it is bleeding out. On the flip side, a wallet can have a win rate of 30% but it’s winners average about 800% and losers average about 2%, this wallet will be extremely profitable over time. So this is part of the art of using Odin. It’s a beautiful dance between The Hunt, Great Risk Management, and balancing Win Rates and PNL sizes
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