What Is Maximum Drawdown? Why Can an Account That Once Earned a Lot Still Face Huge Risks?
In cryptocurrency trading, looking only at how much an account ultimately earned can make it easy to overlook the risks it experienced along the way. Even an account that once generated very high returns may have gone through a severe drawdown and may even struggle to recover because of poor money management. Maximum drawdown is an important metric for measuring this risk.
First, what is maximum drawdown?
Maximum drawdown is the largest percentage decline in an account’s net asset value from a peak to a

ACaiStar an hour ago

What Is the Sharpe Ratio? How Can You Measure Whether a Trading Strategy’s Returns Are Worth the Risk?
In cryptocurrency trading, a high rate of return does not necessarily mean a strategy is good. If a strategy generates high returns but comes with sharp volatility and large drawdowns, we need to further assess whether those returns are worth the corresponding risk. The Sharpe ratio is one tool that can help answer this question.
First, what is the Sharpe ratio?
The Sharpe ratio measures the excess return earned by a portfolio or trading strategy per unit of volatility risk. Generally, the hi

LiuBeiPrince 20 minutes ago

What is a trend-following strategy? Why can it perform well in strong trends but suffer repeated losses in choppy markets?
In cryptocurrency trading, trend following is a common approach: rather than trying to accurately predict tops and bottoms, traders look for entry opportunities after a trend forms and try to follow it for as long as possible. But this strategy is not suitable for all market conditions.
First, what is a trend-following strategy?
A trend-following strategy uses price structure, moving averages, or trend indicators to identify market direction, looking for long opportunities

ChenAn 2 hours ago

11.5 SOL Trading Plan
　　SOL is in a consolidation phase within an overall uptrend. The Bollinger Bands remain open to the upside, signaling a bullish setup. The price has pulled back to near the middle band and stabilized. Key support is at 95.5, with strong support at 94.4. A break below 93.7 would invalidate the bullish structure. The first resistance is the consolidation range at 97.2-97.5, with strong resistance near the previous high of 98.16. A breakout could pave the way for a further move toward the 99.5-100 round-number level.
　　Entry zone: Go long near 95.5 (middle Bollinger Band + s

SOL-0.74%

CryptoAngle 7 minutes ago

[[ NEW STREAMER ] MARKET UPDATE

LIVE1,887

ACaiStar 2 hours ago

How should position size be calculated? Why is it more reasonable to determine the risk amount first and then decide how much to buy?
In cryptocurrency trading, many people tend to assess the market first and then decide how much to buy, overlooking the most important step: if their judgment is wrong, how much of a loss can they actually afford to take? Sound position management should start with a risk budget, not potential returns.
First, determine the risk amount you can afford.
Suppose you have 1,000 USDT in your account and plan to limit the risk on a single trade to 1% of your account ba

UQueenan hour ago

Today is the 717th day I’ve been posting updates. If you think I’m a serious person, you can join me, and I hope my daily posts can help you. The world is big, and I’m small. Follow me so I’m easy to find.
I woke up this morning to find that the sky had fallen: the world’s largest exchange had been hacked, too. Fortunately, it froze some of the on-chain funds in time, preventing the losses from spreading. I guess the market will consolidate for several more weeks.
Crypto users have it so hard, really. Keep funds on exchanges, and the exchanges keep getting hacked, with the amounts stolen

BTC-0.67%

TRX+0.42%

UQueenan hour ago

$HUT with a pretty nasty pre-market down -15% as a result of exposure to Texas. Though Beacon Point is fully leased for 704 MW of critical IT they've got a pretty substantial pipeline in the state that could come under scrutiny
Technically, a backtest to the 0.887 / 0.786 fib is very healthy after a massive move. A bottom should form within the current price zone but if the market has other plans and lets say the indexes drop a bit further, then I'd expect a drop near the trendline
If we zoom out it doesn't change the path very much anyway though. We'll be back to triple digits before end of d

HUT-23.00%

SevenSevenOnGold 19 minutes ago

Earlier, we recommended going long at the current price of 4116. The price continues to push higher, and the move from 4116 to 4130 has opened up $14 in profit potential! $XAU #BTC重返8万 #黄金 ‌

XAU+0.38%

LiuBang 2 hours ago

Why should you reduce trading risk after a losing streak instead of rushing to win back your losses?
In crypto trading, a losing streak not only reduces account funds but can also affect a trader’s judgment. When people are eager to break even, they often increase leverage, take larger positions, or even abandon their original trading plan, turning one loss into an even greater risk.
First, a losing streak can easily trigger emotional trading.
After a loss, people may be eager to prove they were not wrong or hope to restore their account balance as quickly as possible. This mindset can lead to

TradeSignalDiary 2 hours ago

$ELSA Volume keeps rising at the highs, but the price keeps falling. The shady market maker is clearly pumping while offloading, and a sharp crash is probably about to start!
Yep, I’ve already started taking my followers and friends into short positions. Just waiting for the crash to come!
#Gate安全卫士免费开通

ELSA+5.82%

Hongshen an hour ago

Hold your positions patiently; time will give you more room for profit. What levels is everyone short from? #Gate推出行业首个资金安全证明 #Gate上线台股交易

LiuBang 12 minutes ago

What Is a Range Trading Strategy? Why Might It Be More Suitable in a Sideways Market, Yet Risky During a Strong Trend Breakout?
In cryptocurrency trading, prices do not always move steadily up or down. When the market lacks a clear direction and prices repeatedly fluctuate within a certain range, a range trading strategy may be useful. But once the price truly breaks out of the range, the original trading logic may quickly become invalid.
First, what is a range trading strategy?
Range trading involves identifying support and resistance zones where prices repeatedly fluctuate, looking for buyin

Cryptoaman01 an hour ago

⚖️ INDIA MAY END SAFE-HARBOUR PROTECTION FOR SOCIAL MEDIA!
The Indian government is considering changes to Section 79 of the IT Act.
What Changes?
↳ @Meta, @YouTube & @X could face greater legal liability.
↳ Increased scrutiny of content-recommendation algorithms.
↳ Stricter accountability for deepfakes, illegal content and paid ads.
A major shift in India's social media regulation!

Starlink_dualCurrencyRecord 44 minutes ago

Getting unstuck | Don't rush to cut losses; check the levels first
When you're stuck in a position, the biggest risk isn't the loss,
but losing your composure and making rash moves.
In this market, don't cut your losses at every dip or blindly add to your position just to break even.
First, work out your cost basis, position size, and risk.
When the price reaches key support, consider what to do;
when a rebound reaches resistance, consider reducing your position.
Getting unstuck isn't about betting on a rebound, but about gradually managing your position according to a plan.
Before the market

BTC-0.65%

ETH-1.23%

FirstTimeIMetYou an hour ago

#交易机器人 I'm using the ETHUSDT futures grid bot on Gate—come copy trade with me

FortuneTeller42 41 minutes ago

I'm having an internal tug-of-war:
My left brain thinks Democrats may hinder the construction of on-the-ground data centers, making it hugely bullish for SPCX's plan to build data centers in space.
My right brain thinks Musk backed the Republicans, but they lost the election. Democrats may retaliate against Musk and Trump and obstruct Musk's space plans at every turn, making it bearish for SPCX.
So overall, bullish or bearish? $SPCX

SPCX-3.89%

Join 40 M users in our growing community

⚡️ Join 40 M users in the crypto craze discussion

💬 Engage with your favorite top creators

👍 See what interests you

Join 40 M users in our growing community

Trending Topics

GateLaunchesPoSECProofOfSecurity

BTCBackAbove80K

DemocratsWinBothChambers

Upload Local Image

Upload Local Video

Join 40 M users in our growing community

Trending Topics

GateLaunchesPoSECProofOfSecurity

BTCBackAbove80K

DemocratsWinBothChambers