Trading BTC is the toughest game in town. I don't do it for that reason.

Risk tolerance are like finger prints, unique to each individual. You need to set your own margins based on the amount of risk you are willing to take.

I'd start with low risk setting and gradually adjust your margins as your knowledge and confidence grows.

Remember absolutely nobody has a 100% solution. If they claim they do, run the other way.

Good Luck!