Hackernoon logoCalculate Bitmex Trading Position Size (Fees included) For Better Money Management by@florentng

Calculate Bitmex Trading Position Size (Fees included) For Better Money Management

image
Florent Hacker Noon profile picture

@florentngFlorent

Bitmex calculators return eroneous calculations:

A position size with high leverage, without recognizing the fees impact! The loss will be severely superior to your expected trading risk! So, the risk reaward is completely wrong, you can easily lose more than win on every trade and liquidate your capital without understanding! It's sure Arthur agrees...

Calcmex return the maximal position size assuming the type of input and output expected. In the potential loss are included your trading loss (PnL) and your tradings fees (entry and exit, maker or taker)

Check this in the picture example:

Trading loss is 93,89$

Entry fees: -3.05$ (this is a maker entry) and Exit fees: 9.15$

So total fees are: 6.10$

the total loss is 93,89$+6,10$ = 99,99$ wich correspond really with the trading risk (1% of $10 000)

== Steps ==

Go on Calmex and choose the pair you trade

You must input your money management and technical trading parameters:

  1. Input your trading budget either in $ or xbt (your total dedicated trading amount)
  2. Input your trading risk (the trading budget % losses accepted if stop loss hitted)
  3. Input your entry level
  4. Input the stop loss level (the smaller is the entry stop loss distance, the bigger is your trading power)
  5. Input the target level
  6. Switch buttons if you intend to enter, exit in maker mode
  7. Press "Enter" or LOAD button

Calcmex provides results in $ and Xbt:

  1. Your calculated position size
  2. The leverage needed
  3. The risk reward fees inclued (potential gain to risk loss ratio)
  4. The potentiel gain fees included
  5. The breakeven fees inclued (exit level without loss or profit)
  6. The risk loss fees inclued (%trading budget risk)

Calcmex provides calcul verification, look at the entry fees impact:

On the position size, profit, breakeven and the most important : Riskreward!

Warnings :

Don't use calculators not including trading fees in calculs: impossible correct money management especially with leverage!

You can trade on Bitmex if you're Ok with your calculated riskreward (>1 is better)

I hope these tips will enhance your performance, share with all and don't waste anymore time or money!

Also published at https://medium.com/calcmex/calcul-your-bitmex-trading-position-size-fees-inclued-for-a-correct-money-management-edf1c9aba896

Tags

Join Hacker Noon

Create your free account to unlock your custom reading experience.