Position Sizing and Leverage for Signal Followers

The signal tells you where to enter and where you are wrong. Only you decide how much to risk, and that decision matters more than any single signal.

Risk per trade comes first

Decide the maximum share of your trading capital you are willing to lose on one trade, before you look at any signal. One percent is common among careful traders; two percent is aggressive; five percent or more means a normal losing streak can halve the account. A provider with a 78 percent win rate still produces four or five losses in a row from time to time; the journal shows it.

Size from the stop, not from a feeling

The signal gives an entry and a stop. The distance between them is your risk per unit. Position size follows:

• Account: 5,000 USDT, risk per trade 1 percent, so 50 USDT at risk.
• Signal: entry 2,668, stop 2,653, a distance of 15 USDT, or about 0.56 percent.
• Size: 50 divided by 15 equals about 3.3 ETH, which is a position of about 8,900 USDT.

That position is larger than the account, which is where leverage comes in. Note that the leverage was a consequence of the stop distance and the risk budget, not a choice made first.

What leverage actually does

Leverage lets you hold a position larger than your margin. It does not change the trade's probability, and it does not change the dollar risk if you sized from the stop. What it changes is liquidation: at 10x leverage, a move of roughly 10 percent against you wipes the margin; at 50x, roughly 2 percent. If the signal's stop is 0.56 percent away and you use 10x, the stop fires long before liquidation, which is fine. At 100x, liquidation could come before your stop. The ASI dashboard calculator flags exactly this on every card.

The calculator on the dashboard

Every ASI signal card shows what the trade means in money for your margin and leverage: the profit at each target, the loss at the stop, and a warning when the stop distance is close to the liquidation distance. Set margin and leverage once; the numbers update on every card. It is approximate, before fees and funding, and it is there to stop people from using 100x on a wide-stop setup.

Fixed percentage beats fixed dollars

Risking a fixed percentage of the current account means position sizes shrink during a losing streak and grow during a winning one, which protects the account where it matters. Risking the same dollar amount every time makes a losing streak hit harder as the account gets smaller.

Scaling out across three targets

With three targets, the simplest plan is thirds: close a third at each target. Once target 1 is hit the stop moves to entry, so the remaining two-thirds cannot lose. The expected value of this plan depends on how often each target is reached, which is why the journal records the furthest target hit. A more aggressive plan takes half at target 1 and lets the rest run to target 3.

Correlated signals

Three long signals on three altcoins are not three independent bets; altcoins move together with bitcoin most of the time. Treat correlated open positions as one larger position and reduce size accordingly. The dashboard shows the overall market sentiment for exactly this reason.

A simple weekly routine

• Set your risk per trade and leverage cap on Sunday and do not touch them mid-week.
• Only take signals whose stop distance works with your leverage cap.
• Record every trade you take, including the ones you skipped and why.
• Review the week against the public journal: if your results differ a lot from the engine's, the difference is usually execution, not the signals.

Frequently asked questions

Educational market analysis, not financial advice. Trading cryptocurrencies involves substantial risk of loss. Past results do not guarantee future results. Figures quoted are from the public ASI Signals journal as of 6 October 2026; a win means the first target was reached.