📊 Trade Setup Overview

I'm planning to enter a position in IBIT (iShares Bitcoin Trust ETF) at $49.72 with a protective stop loss at $48.50 on a closing basis. My analysis shows a promising technical setup that warrants this trade.

📈 Technical Analysis

The current price action demonstrates two key bullish signals:

1. 50 EMA Breakthrough ✅

IBIT is now trading above its 50-day exponential moving average
Price didn't just creep above—it gapped up over this key technical threshold
This suggests strong bullish momentum

2. Trendline Breakout ✅

Clear breakout above a previously established trendline
Suggests momentum is shifting in favor of the bulls

💰 Position Sizing Example

Below is an example of how I calculate position sizing with strict risk management principles: https://chartyourtrade.com/position-size-calculator/

Parameter	Value	Calculation
Total Portfolio Value	$10,000	—
Risk Per Trade	0.2% of portfolio	$20
Entry Price	$49.72	—
Stop Loss	$48.50	—
Risk Per Share	$1.22	$49.72 - $48.50
Position Size	16 shares	$20 ÷ $1.22
Total Position Value	$815.41	16 shares × $49.72
Percentage of Portfolio	8.15%	$815.41 ÷ $10,000

Note: This position sizing calculation is provided as an educational example to demonstrate the risk management process.

🛡️ Risk Management Strategy

In this example, the risk calculation shows risking $20.01 on this trade, which represents:

0.2% of the total portfolio value
2.45% of the position value

By using a closing basis stop loss at $48.50, the trade has enough room to breathe while still protecting the downside.

🎯 Trade Plan Execution

Entry: Buy at $49.72 (number of shares will depend on your actual position sizing)
Stop Loss: Exit the entire position if IBIT closes below $48.50
Profit Target: Looking for a 20% gain, which would put price at approximately $59.66
Reward-to-Risk Ratio: With a 20% target against a 2.45% risk, this creates a favorable 8:1 reward-to-risk ratio

💭 Final Thoughts

This trade represents a calculated risk based on technical analysis. While I'm confident in the setup, keeping risk limited to just 0.2% of a portfolio allows for:

Taking advantage of the potential upside
Ensuring any losses remain manageable
Maintaining overall portfolio health
Trading with emotional control

"The key to trading success is emotional discipline. Making money has nothing to do with intelligence. To be a successful trader, you have to be able to admit mistakes. If you think you're always right, you'll lose everything." - Victor Sperandeo

Note: This represents a personal trading plan and is not financial advice. Always do your own research and consider your risk tolerance before making investment decisions.

My IBIT Trade Plan: Technical Setup with Calculated Risk