Bitcoin is the most traded crypto asset and is available around the clock. For funded traders, that is both an advantage (more opportunities, trading outside work hours) and a trap (no natural pause, big moves at any time).
When Bitcoin moves
- The US session: crypto often reacts to US stock markets and US data.
- The Asian evening and European morning: some of the biggest daily moves start there.
- Weekends: lower liquidity, sometimes sudden spikes.
Position sizing for crypto
Bitcoin's daily moves in percentage terms are often several times those of EURUSD. A stop that is 1% away on BTC is a normal intraday stop. Calculate the position from that distance: on a $100K account risking 0.5% ($500) with a 1% stop, the position value is about $50,000, or roughly half a Bitcoin at a price of $100,000. Check the contract size per lot in the platform.
Weekends
Crypto keeps trading on Saturdays and Sundays, but your account's rules still apply. On programmes that close positions before the weekend, plan crypto trades to finish on Friday. Where weekend holding is allowed, remember that thinner liquidity can mean larger spikes.
A simple approach
- Use the 4-hour trend and the daily open as a reference.
- Buy pullbacks to support in uptrends; avoid catching falling knives in sharp sell-offs.
- Take partial profits: crypto moves often reverse quickly.
- Avoid trading during major US data releases, which also move crypto.