#ETH Why do contracts always get liquidated? It's not bad luck; you fundamentally don't understand the essence of trading! This article, encapsulating eight years of trading experience, presents low-risk principles that will completely subvert your understanding of contract trading — liquidation is never the market's fault, but rather a time bomb you planted yourself.
Leverage ≠ Risk: Position size is the lifeline
Using 1% position with 100x leverage, the actual risk is only equivalent to 1% of a full spot position. A certain student used 20x leverage to trade ETH, only investing 2% of the capital each time, with three years of zero liquidations. Core formula: Real risk = Leverage multiplier × Position ratio
Stop loss ≠ Loss: The ultimate insurance for your account
In the March 12, 2024 crash, 78% of liquidated accounts shared a common feature: losses exceeding 5% but still not setting stop losses. Professional traders' iron rule: Single loss must not exceed 2% of the capital, which is like setting a "circuit insurance fuse" for the account.
Rolling positions ≠ All in: The correct way to compound
Stepwise position building model: The first position is 10% for trial and error, using 10% of profits to add to the position. With a capital of 50,000, the first position is 5,000 (10x leverage), adding 500 for every 10% profit.
Institution-level risk control model
Dynamic position formula
Total position ≤ (Capital × 2%) / (Stop loss margin × Leverage multiplier)
Example: With 50,000 capital, 2% stop loss, and 10x leverage, the maximum position is calculated as 50000 × 0.02 / (0.02 × 10) = 5000.
Three-stage take profit method
1. Close 1/3 at 20% profit 2. Close another 1/3 at 50% profit 3. Move stop loss for remaining position (exit when breaking the 5-day line)
In the 2024 halving market, this strategy increased 50,000 capital to one million over two trends, with a return rate exceeding 1900%.
High-frequency trading: Average 500 operations per month, losing 24% of capital.
Greed for profit: Not taking timely profits resulted in 83% profit drawdown in the account.
4. Mathematical expression of trading essence
Expected profit = (Win rate × Average profit) - (Loss rate × Average loss)
When setting a 2% stop loss and 20% take profit, a 34% win rate is sufficient to achieve positive returns. Professional traders achieve through strict stop losses (average loss 1.5%) and trend capturing (average profit 15%).
Ultimate rule:
Single loss ≤ 2%
Annual trades ≤ 20
Profit-loss ratio ≥ 3:1
70% of the time in cash waiting
The essence of the market is a probability game; smart traders risk 2% to capture trend dividends. Remember: Control your losses, and profits will run naturally. Establish a mechanical trading system to let discipline replace emotional decision-making; this is the ultimate answer for sustained profits. #加密市场反弹
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