Simon Mach: Trade Crypto Smarter. Risk First. Trade Second.

I mean, and I love to hear, because you're very, you manage everything with that risk, you know, lens, that risk mindset all the time.

And I'm sure a lot of people listening to this, you know, including myself, I'm a, I mean, I love blockchain.

I love it.

I love non-crypto blockchain also in the supply chain or any, because I think that's going to be the wave of the future once we have that infrastructure in place.

But for crypto, right, I'm always, okay.

How do I evaluate this? Because I'm a finance guy, right? And you're not going to get that clean balance sheet and income statement like you would for more of a physical type industry or something that you're buying or a fund or a bond or a stock, right? How do you go about that evaluation to manage that risk? Is it just looking at the volatility? And I'm sure you probably have a different approach depending on, you know, what type of token it is also.

Well, managing the risk is really the most important stuff for us because we focus more on the risk than the profit.

Because when you first take a look at the risk, then you have higher probability of survival and that's the whole game, right? Focusing on risk first will make sure that you will survive.

And if you have a system where every trade you take comes with a higher probability of winning than losing, and then also you have a great risk reward, that means on every trade, when you are correct in your trading decision, you will win more money than when you are wrong, right? Then you have...

a system where you can be long-term profitable.

But of course, in the short run, it's volatile.

As you have said, it's volatile.

So the same way when we flip a coin, it's always 50-50 chance if the heads or tails comes in.

But in this kind of large numbers state, we can have a phase where eight times 20 times even in a row we will hit heads right so that's a probability we can get unlucky so we can go through a losing streak the same way the coin can hit heads 20 times in a row.

That is why risk is extremely important because the short term is very volatile, so we need to protect our capital because we understand we can get unlucky, right? And when we can manage the risk and we have high probability trade setups, we only enter the high probability trade setups, then Because we focus on the long term, we can make money.

So focusing on risk is extremely important because without it, you will hit the losing streak, right? And you will go bust.

Or you won't know when to get out or get in, right? It's all the timing of it all.

You know it's going to go up and down, but it's hitting that time.

That's like, if you knew when something was going to happen, then you got to figure it out, right? But you know it's going to happen eventually, but the when is the hard part, right? And there's all sorts of indicators out there that might...

tip you off of okay this is happening closer to now than it will next week or something like that right just like any kind of uh stock or something like that right to kind of you know minimize that risk or and now do you do a diversification approach too to help that out with different tokens to help that risk management or is it a different type of philosophy

Well, we definitely do diversification, but we need to understand that when crypto dumps, everything goes down.

Yeah, so a lot of people think like they are diversificating when they put something in, for example, ADA coin, something in XRP coin, something in Bitcoin, something in Litecoin.

But when something goes down, Everything goes down.

So it's not really like hedging or diversification when you spread your money between multiple altcoins.

So what we are doing instead is that we are diversifying ourselves between different trading tactics, okay? So we have trading tactics and strategies that sometimes perform better in this market phase, sometimes in this market phase.